The Overseas IPO Of Chinese State-owned Large Enterprises

As the overseas IPO of Chinese state-owned large enterprises grow rapidly in both scale and quantity, many experts and scholars have developed hot discuss on the issue of "whether the state-owned large enterprises should list overseas or not". This thesis makes a deep theoretical research and practical analysis on this issue.The research and analysis mainly focus on the motivation, gains and loses while listing overseas. It starts from the motivation analysis to demonstrate the causes of the overseas IPO from three requirements, stated are the reform of state-owned enterprises, financing and Going Abroad. Then it mainly analyzes the gains and loses of the listing overseas with the example of PICC to draw the conclusion. The whole thesis is composed of 5 chapters, and the following are the main content of each chapter.Chapter I explains the research purpose, meaning, contents, present situation and the routine of the thesis, and briefly illustrates the relative theories about IPO overseas.Chapter II focuses on the causes why these large enterprises didn't choose to list domestically, and the three main ones are the limit volume of domestic security market, the non-regulation of the stock reform as well as the high invisible cost. Then the thesis explains respectively why these enterprises chose to list abroad with 3 theories, listed here are modern enterprises theory, enterprises financing theory and location economic theory, and illustrates the reasons why overseas IPO can while domestic security market cannot solve many problems.Chapter III mainly analyzes the gains and loses of the overseas IPO of the state-owned enterprises. The first part analyzes the gains on the view of utilizing foreign investment, improving the capital structure, establishing modern enterprise system and enterprises operating globally. The second part, however, points out the problems, including high cost and expenditure of overseas IPO, the negative influences on Chinese security market, exchange rate and interest rate market, etc. It finally draws a conclusion that we shall combine the present condition of our security market with the strategy of the country's development, so that to control the pace of state-owned big enterprises' listing overseas.Chapter IV analyzes the case of PICC, detailing its success and the great cost, so that to provide an instruction and reference to other overseas IPO.The fifth chapter presents the conclusion and suggestion. It makes a conclusion of the gains and loses of the overseas IPO of Chinese state-owned large enterprises on the basis of the above 4 chapters' theoretical analysis and impracal research, that itbring more advantages and we shall support and encourage more high-quality big enterprises to list and compete overseas. And it also presents corresponding countermeasures to some problems encountered during overseas IPO.