{"id":235,"date":"2015-07-15T19:51:11","date_gmt":"2015-07-15T19:51:11","guid":{"rendered":"https:\/\/leijianglaw.com\/WP\/?page_id=235"},"modified":"2023-09-26T16:56:44","modified_gmt":"2023-09-26T20:56:44","slug":"235-2","status":"publish","type":"page","link":"https:\/\/leijianglaw.com\/zh\/235-2\/","title":{"rendered":"\u6d77\u5916\u4e0a\u5e02\u5730\u70b9\u7684\u9009\u62e9\u539f\u5219"},"content":{"rendered":"
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More than 200 Chinese companies have listed in the U.S. stock market to date.\u00a0 Still, this represents a very small percentage of the more than 10,000 public companies in the U.S.\u00a0 U.S. and China now remain as the world\u2019s two largest economies.\u00a0 Further cooperation in the economic arena should benefit both countries.<\/p>\n\n\n\n

For U.S. investors, China represents a significant growth opportunity due to its large and still rapidly growing economy.\u00a0 Even in the global economic downturn in recent years, China has not shown any signs of slowing down.<\/p>\n\n\n\n

For Chinese investors, the U.S. represents a land of opportunities, the largest consumer market, and well-regulated capital environment.\u00a0 In this global economy, there are a lot things that the Chinese can learn from American.<\/p>\n\n\n\n

What attracts Chinese companies to the U.S.?<\/strong><\/h3>\n\n\n\n

There are two types of companies in China, Sate Owned Enterprises and private companies.\u00a0 Right now, the Chinese economy is largely driven by high growth small and medium-sized private enterprises.\u00a0 Private ownership of businesses and assets is currently encouraged by the Chinese government because they provide the majority of jobs, a variety of products, and the most growth.\u00a0 However, Chinese domestic listings are very difficult for these medium sized companies, if not nearly impossible, dues to long waiting periods as a result of the thousands of listing candidates waiting in the pipeline.\u00a0 Therefore, global markets in Hong Kong, U.S., and U.K. have become attractive alternatives.\u00a0 Hong Kong so far is the number one choice, but recently, more and more Chinese companies consider the market in the U.S., maybe because of seeing the success of some Chinese companies listed in the U.S.<\/p>\n\n\n\n

How to get listed in the U.S.?<\/strong><\/h3>\n\n\n\n

There are two common ways to get a listing in U.S., an IPO and a reverse merger.\u00a0\u00a0<\/span>IPO<\/em>\u00a0<\/span>is relatively known to most people.\u00a0 An IPO is accomplished by filing some forms with SEC.\u00a0 After a SEC review, a company can go public by raising capital at an agreed price through an underwriting firm. \u00a0A\u00a0<\/span>reverse merger\u00a0<\/span><\/em>is a transaction whereby a shell company (an incorporated entity with no business operations) that is already listed on an American Exchange \u201cbuys\u201d the Chinese company that is seeking to go public.\u00a0 After that, the company usually undergoes a capital raise.\u00a0 Finally, the company files forms with the SEC and goes through a full SEC review.\u00a0 Capital raising in a reverse merger is usually done through PIPE (Private Investment In Public Equity, used primarily by mutual funds and private investment firms where they buy discount stock in order to raise capital), or other means.<\/p>\n\n\n\n

It does not matter which method is used by Chinese companies.\u00a0 The important things are exercising due diligence, following disclosure rules and corporate governance.\u00a0 Healthy companies will get noticed by investors over the long run.\u00a0 Path to the public does not indicate success.\u00a0 There are many failed reverse mergers, but probably more failed traditional IPOs.\u00a0 It is the management\u2019s ability to create value for its shareholders that determines the ultimate success in the U.S. market.<\/p>\n\n\n\n

A multi-cultural global environment involves many complexities.\u00a0 Chinese companies who think about going public in the U.S. market should consider the difference in culture, regulatory framework, and political environment.\u00a0 Sometimes a seemingly small difference may have huge implications.\u00a0 For example, the definition of \u201corganic\u201d varies from country to country.\u00a0 An \u201corganic\u201d product in the Chinese local market might not be labeled as \u201corganic\u201d in the U.S. market.<\/p>\n\n\n\n

Another concern is that many Chinese companies could not even pass the first step in U.S. acquisition.\u00a0 Many transactions have been blocked by the U.S. government because of security concerns.\u00a0 Still more have been blocked even without any threats to U. S. security.\u00a0 This is because most large Chinese companies are State Owned, with close ties to the Chinese Government.\u00a0 This makes the U.S. lawmakers wary about Chinese investments.\u00a0 These include Chinese acquisitions in steel, oil and gas, media companies, and some technology companies which have no tie to national security.\u00a0 Still, Chinese companies now look to expand abroad, not only in the U.S. market.\u00a0 They have spent massive capital on acquisition of foreign assets.\u00a0 This does provide international investors a great opportunity to participate in China\u2019s entrepreneurial spirit, economic prosperity, and creativity and diligence.<\/p>\n\n\n\n

Lei Jiang Law Firm provides many legal services in China related transactions.\u00a0 For more detailed information, tailored analyses, and legal opinions, please\u00a0<\/span>contact us<\/a>.<\/p>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"

More than 200 Chinese companies have listed in the U.S. stock market to date.\u00a0 Still, this represents a very small percentage of the more than 10,000 public companies in the U.S.\u00a0 U.S. and China now remain as the world\u2019s two largest economies.\u00a0 Further cooperation in the economic arena should benefit both countries. For U.S. investors, […]<\/p>","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"","meta":{"footnotes":""},"class_list":["post-235","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/leijianglaw.com\/zh\/wp-json\/wp\/v2\/pages\/235","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/leijianglaw.com\/zh\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/leijianglaw.com\/zh\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/leijianglaw.com\/zh\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/leijianglaw.com\/zh\/wp-json\/wp\/v2\/comments?post=235"}],"version-history":[{"count":23,"href":"https:\/\/leijianglaw.com\/zh\/wp-json\/wp\/v2\/pages\/235\/revisions"}],"predecessor-version":[{"id":2575,"href":"https:\/\/leijianglaw.com\/zh\/wp-json\/wp\/v2\/pages\/235\/revisions\/2575"}],"wp:attachment":[{"href":"https:\/\/leijianglaw.com\/zh\/wp-json\/wp\/v2\/media?parent=235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}