Why did the listing of domestic companies on Nasdaq change the myth of millionaires? So is Nasdaq, which symbolizes wealth, really like this?

Why are domestic companies keen on listing on Nasdaq? Although it is easy to get started, in terms of legal risks, the "threshold" of the U.S. securities market is definitely not low.

The United States not only has very high requirements on all aspects of companies, but also has much greater supervision than Hong Kong and domestic A-shares.

For example, "legal packaging" that has long been a "common practice" in the Chinese industry does not work in the United States.

Nasdaq was once a nightmare for the entire Chinese Internet industry.

In the crazy era when the Internet bubble has not yet burst, a group of companies may have to struggle for three years to be listed on the domestic main board at any time. Therefore, most companies that are eager to raise funds choose to list overseas. In the overseas capital market, China

People are most interested in Singapore, Hong Kong and the United States, and the United States has been the most popular location for Chinese companies in the past 10 years. The United States has three major securities trading markets-New York Stock Exchange (N YS E), American Stock Exchange (AMEX),

The success rate of listing in the United States is over 99%. As long as the correct steps are strictly followed, the listing preparation process will be smooth.

Very short: Listing on NASDAQ, which is most favored by Chinese companies, can be completed in as little as half a year or even four months. Listing on OTCBB can be completed in as little as 5 to 6 months. Secondly, the threshold is low and the financial status is real.

It can be listed, and the quality of the company is "irrelevant". Since 2007, China has become Nasdaq's largest overseas market for three consecutive years. In addition to solving the problem of "far water cannot quench near thirst", the listing threshold is also low.

The important reason why Chinese companies originally chose to list in the United States is that unlike the approval system implemented by the domestic main board, the United States implements a registration system for new stock listings, that is, no substantive review is conducted before the issuer issues securities, and only the formal review of the application documents is carried out.

This means that the performance of companies that issue securities is not within the scope of supervision. They only need to bear legal responsibility for the authenticity, accuracy, and timeliness of registration information. The regulatory agency, the U.S. Securities and Exchange Commission (SEC), has no authority to regulate the issuance of securities.

Behavior and securities themselves make value judgments. Thirdly, although the cost of listing in the United States is higher, the "honor of listing in the United States" can create potential value. Although the listing is faster and the threshold is lower, the cost of listing overseas is actually higher.

Even compared with the main boards of Singapore and Hong Kong, listing fees for domestic A-shares are still the highest (including sponsor fees, legal advisory fees, accountant fees, etc.), generally 13% of the total amount raised.

%~18%. However, although the fees are relatively high, the improvement of corporate brand appeal and reputation in the US securities market is an advantage that the domestic market cannot provide. Good Truth Quality ObservationCopyright? Bokan.com www.

bookan.com.cn. All Rights Reserved. June 2019 48 manages three mutually independent but interchangeable trading systems, so the so-called "backdoor listing through train" operation has appeared. In fact, there are many.

The so-called backdoor listing is just to buy a shell on the pink sheet market, because the cost of this kind of transaction is extremely low. According to incomplete statistics, there are about hundreds of Chinese companies listed on OTCBB, and there are more than ten companies.

Through the transfer of OTCBB to the New York Stock Exchange or Nasdaq, some company investors have also obtained certain investment income. However, most of the listed companies are small in scale, have poor competitiveness, and suffer operating losses, and their stock prices are lower than investors' costs.

There are many cases, and even some companies are listed on OTCBB just to cash in and make profits, inducing investors to buy their so-called "original shares" and committing fund-raising fraud, causing heavy losses to investors.