The Research of Bringing Foreign Companies Listed in China(Mainland)
|School||Guizhou College of Finance and Economics|
|Keywords||international board internationalization of securities cross-border listing perspective international experience system designation|
The State Council announced the some suggestions about how to make use foreign capital on April 13th 2010.The suggestions supported China’s listed companies to bring foreign strategy investors, and also supported eligible foreign companies to Initial Public Offerings in China. In the latest 2011-2020 strategy planning of Shanghai Stock Exchange, the strategy specified that up SSE would try their best to the construction of the market of international board before 2013. Bringing in foreign companies listed in China is becoming a national strategy.This paper is just the analysis about bringing in foreign companies listed in China on the background of internationalization of securities market of China. In introduction of this paper, the research background, meanings of study, historical document, research method are stated.In the second chapter, the basic theories about cross-border listing are summarized. Firstly it stated the economic theory of international capital flow, it includes interest differential theory, profit-driven theory, portfolio theory, international direct investment theory and so on. And then financial innovation theory and internal and external disequilibrium theory is stated respectively.In the third chapter, firstly the background and purpose about foreign developed capital markets were analysised when they were bringing in foreign companies listed in their markets, it includes U.K and U.S.A which have a long history in capital markets, and also includes Japan which was newly raising capital markets. It would give some advice about opportunity in bringing in foreign countries listed in Mainland from the comparative analysis. Secondly, this chapter emphasized the listing standards、the listing procedures and the supervision and information disclosure of foreign listed companies in U.S.A. This experience is precious for Chinese capital market which has flaws in information disclosure and supervision systems. Finally, this chapter gives some advice about bringing in foreign companies listed in China based on the above research.The fourth chapter discussed the institutional arrangement about bringing foreign companies listed in China, there are three parts in this chapter. The first part proofed the significance of bringing foreign companies listed in China for Chinese capital market from the standpoint of internationalization of securities, the construction of regional financial center, increasing the capital market status of China, increasing the integrated quality of listed companies and promotion of internationalization of the RMB respectively. The second part discussed the prospect of foreign companies which will listed in China. Firstly the impact and influence of bringing foreign companies listed in China are analysised, it includes the impact to the financing function of Chinese capital market, the challenge of RMB internationalization, and the trail of our capital’s supervision ability. And then it analysised the prospect of international board of China, it considered that China has the ability to guarantee the international board on the right path considering China’s economy and sufficient liquidity. In the last part of this chapter it specified the controversy in the institutional arrangement. This paper considered that the creation of international board must follow the principle of step by step. The choice of timing of international board must be careful, the stability of macro economy is necessarily. This paper also proposed that choose the pure foreign companies listed in China with CDR firstly. The stock issuance system, exchange of RMB in capital account, rules of law and the requirement of information disclosure are also discussed.The fifth chapter is conclusion. Through the previous analysis the paper concluded that bringing in foreign companies listed in China (mainland) is the inevitable road in the process of internationalization about Chinese securities market. China has enough ability to face the impact of foreign companies. On the base of learning international experience of bringing in foreign companies listed in their countries and analyzing the characteristics of our capital market, this paper considered that the creation of international board is necessarily and the course must be step by step, and the system designation must keep abreast of our opening pace of our capital market.