2023 is coming to an end, looking at the Chinese companies that have been listed in the United States and Hong Kong stocks and have submitted prospectuses in the first half of the year, we find that many companies have been listed in the United States, and then delisted and then chose to be listed in the United States or Hong Kong stocks, through the following two charts to take stock of the first half of 2023 Chinese companies that have been transferred to the board. Answer why more and more Chinese companies will be listed from the first board.
We know that there are a lot of companies listed and delisted every year, and the reason why small and medium-sized enterprises choose to be listed is because it is conducive to broadening the financing channels of enterprises
The following is the amount of funds raised by the first half of 2023.
As of mid-June, a total of 314 companies have completed private placements this year, with 31 issuances9.7 billion shares, a total of 97 percent raised2.9 billion yuan, accounting for 79 percent of the total funds to be raised88%。Compared to the same period last year, 352 companies issued 266.2 billion shares, with a total amount of 107 raised2.6 billion yuanSince the beginning of this year, the amount of financing has fallen by 9 year-on-year3%
We also sorted out the amount of monthly financing, as shown in the figure, this year's refinancing situation does not seem to be optimistic, except for the Spring Festival factor in February, most of the financing amount is about 2 billion yuan, and in early June, the financing amount is only 19.3 billion yuan, the amount raised has dropped significantly, and it can be predicted that the actual amount of financing may hit a new low in the future
So, what is the reason why more and more first-class companies choose to list on Hong Kong and US stocks?Huayixin summarizes the following points:
1. The financing situation of small and medium-sized enterprises in the company is not optimistic, so the listing will not achieve the original purpose of the company's financing.
2. The cost of listing an enterprise is about 2 million yuan, but the annual maintenance cost after listing is also about 300,000 yuan, which is not a small expense for these small and medium-sized enterprises, which greatly increases the burden on the enterprise.
3. The listing conditions of the NASDAQ are lower than those of the first-class innovation layer, and the cost is also lower than that of the Beijing Stock Exchange.
4. In terms of subsidies, it has successfully landed on the NASDAQ market, and the subsidies across the country are starting from 5 million. And if it lands in the U.S. market, the financing channels for the company are also diverse, and investors come from all over the world. So far, the brand benefits have also been obtained, the popularity has also been achieved, and the business development is also broader, in short, it is only beneficial to the development of the enterprise.
5. Since the signing of the China and US audit cooperation agreement in August 2022, the Audit Committee of the US Securities and Exchange Commission (SEC) has reviewed the audit working papers of domestic Chinese concept stock companies in Hong Kong, and finally passed all of them, so that the risk of delisting of China concept stocks has been ruled out. In the past, Chinese companies had to raise more than $25 million to go public in the United States, but now they don't need to. This also lowers the conditions for Chinese companies to go public in the United States in another aspect, and provides a good opportunity for Chinese small and medium-sized enterprises to enter the global capital market.
Looking at the specific practice of enterprise financing in China, it can be seen thatTags often act as a springboard. After the enterprise is cultivated, in the state of not reaching the initial financing target, coupled with the annual maintenance fee, the enterprise often chooses to transfer or delist, but after the delisting, the financing channels can be very few, so the enterprise generally considers the transfer of the board, and what to go to the main board is the biggest problem that enterprises face next. Huayixin believes that the NASDAQ market and Hong Kong stocks of US stocks are very good choices.