If a start-up company chooses RMB financing, its listing path is to transform the company from a (domestic) limited liability company into a (domestic) joint-stock company and list it domestically.

If a startup company chooses to receive U.S. dollar financing in the form of a JV, its listing path is to transform into a foreign-invested joint-stock company and list it domestically.

If a startup company chooses to receive U.S. dollar financing through a VIE structure, its listing path will be overseas listing (such as the U.S. or Hong Kong market).

In the U.S. market, the P/E ratio of Chinese companies is usually 20 or 30 times; the domestic GEM P/E ratio is on average 50 or 60 times. Both entrepreneurs and VC/PE have huge profit potential. For example, if a startup company plans to be listed in China,

You can choose RMB financing or USD financing in the form of JV.

It is worth noting that domestic listings currently implement an approval system (for the purpose of protecting public investors, the China Securities Regulatory Commission will strictly review the equity structure and evolution, business, related transactions and horizontal competition of the companies to be listed).

), while the US listing adopts a registration system (which emphasizes the principles of information disclosure and formal review, and does not judge the investment value of companies to be listed), and domestic listings also have higher profit requirements for companies to be listed, so the threshold for domestic listings is relatively high.

Higher for overseas listings.

In addition, since the development of the domestic capital market is at a relatively early stage, policy documents promulgated by the China Securities Regulatory Commission and other competent authorities as well as future relevant legislation are subject to greater uncertainty. For example, due to various factors such as share-trading reform and secondary market fluctuations,

For various reasons, the China Securities Regulatory Commission has suspended and restarted the acceptance of domestic IPO applications several times. As a result, Chinese companies have experienced several overseas listing booms and a boom in the return of red chips.

The strategic emerging boards and stock issuance registration system reforms proposed by the China Securities Regulatory Commission in recent years are still in the research stage, and there are uncertainties in specific legislation and implementation.

As the domestic capital market gradually develops and matures, the selection boundaries of funds in different currencies are gradually blurring, and many VC/PE offer dual-currency options.

RMB and US dollar funds only represent one form of fundraising. There is no completely unsolvable gap between the two. It is more necessary to choose US dollar funds or RMB funds based on the business characteristics of each startup company.