Chinese companies that want to be listed in the United States must meet both Chinese requirements and U.S. requirements.
1. US requirements: There are three major securities exchange markets in the United States, NASDAQ (NASDAQ), New York Stock Exchange (NYSE), and American Stock Exchange (AMEX).
Only after a company meets the requirements of various markets for the company can its stocks or securities be issued and traded in the market.
The following is an example of the requirements for non-U.S. companies to be listed on the New York Stock Exchange (NYSE): the number of shares held by the public must be no less than 2.5 million shares.
The number of shareholders holding more than 100 shares must be no less than 5,000.
The company's stock market value is not less than $100 million.
The company must have made continuous profits in the past three fiscal years, with no less than US$2.5 million in the last year, no less than US$2 million in each of the first two years, or no less than US$4.5 million in the last year, with a cumulative profit of no less than US$2.5 million in the last three years.
Less than $6.5 million.
The company's net tangible assets are not less than $100 million.
Various requirements on the management and operations of the company.
Other relevant factors, such as the relative stability of the company's industry, the company's position in the industry, the market situation of the company's products, the company's prospects, the public's interest in the company's stocks, etc.
2. Chinese requirements: Domestic joint-stock companies that meet the conditions for overseas listing can apply to the China Securities Regulatory Commission for overseas direct listing financing. The China Securities Regulatory Commission will approve listing applications that meet the following conditions in accordance with the law.
The purpose of financing is in line with national industrial policies, foreign investment utilization policies and national regulations on fixed asset investment projects.
The net assets of the applying company must be no less than RMB 400 million, the after-tax profit in the past year must be no less than RMB 60 million, and the amount of overseas financing should not be less than US$50 million.
It has a standardized corporate governance structure, a relatively complete internal management system and stable senior management.
Dividends and dividends after listing must have reliable sources of foreign exchange and comply with relevant national foreign exchange management regulations.
Applicant companies must submit application materials in strict accordance with the procedures prescribed by the China Securities Regulatory Commission.
Extended information: Chinese companies’ listing in the United States has cooled down. Chasing listings in overseas markets was once the wish of some domestic companies, but recently, the number of Chinese companies listing in the United States has cooled down significantly.
In the first quarter of 2019, seven Chinese companies were listed in the United States, a number far lower than the same period last year.
Specifically, in 2019, 39 companies landed in the U.S. capital market, among which 7 were Chinese companies, down 36.36% month-on-month and 30% year-on-year; the fundraising scale totaled 1.973 billion yuan, down 80.68% month-on-month.
%, a year-on-year decrease of 90.68%.
Previously, in March 2018, the scale of listings of Chinese companies in the U.S. market reached 20.3 billion yuan.
This is mainly due to the launch of the domestic Science and Technology Innovation Board, which has reduced the enthusiasm of Chinese companies to go public in the United States, and the number of Chinese IPOs in the U.S. stock market is not as good as before.
The U.S. IPO market has not been active since the beginning of 2019, due to the suspension of U.S. stock exchange operations at the beginning of 2019.
Some domestic companies that are willing to list in the United States are beginning to consider other financing channels such as the Science and Technology Innovation Board.