Red-chip companies refer to companies incorporated outside mainland China and controlled by Chinese government agencies. They need to obtain special approval from the State Council and pass the review of the Hong Kong Stock Exchange. Overseas non-state-owned enterprises refer to companies incorporated outside mainland China and controlled by Chinese government agencies.

A company controlled by a mainland individual.

Overseas companies are usually listed through round-trip investment.

Foreign mergers and acquisitions require approval from the Ministry of Commerce; registration with the Administration of Foreign Exchange; overseas listing and trading of SPVs must be approved by the securities regulatory authority of the State Council; and must be reviewed by the Hong Kong Stock Exchange.

Extended information: Compared with H-share listings, the Hong Kong Securities Regulatory Commission’s regulations on red-chip listings are relatively loose, and listing fees are lower; in addition, the ability to raise funds again after listing is also stronger, and companies can issue new shares half a year after listing.

Re-raising funds; listing in the form of red chips, it is much easier for original shareholders to cash out than H shares (listed on the Hong Kong Main Board, major shareholders can sell the shares actually owned by them as listed in their prospectus 6 months after listing)

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