The Comparison And Analysis Of Chinese Small And Medium Private Enterprises Listing In Domestic And Abroad Stock Market

This paper studies the situation of small and medium-sized private enterprises listing in China and in the overseas major stock markets. It also compares the outside market's financing conditions and factors such as the efficiency of market operations, mainly concentrating on the United States, Singapore and Hong Kong. The main point is this: According to the listing of the securities market overview and neglected industries, Hong Kong is the most suitable place for the small and medium-sized private enterprises in China. However, small and medium private enterprises to be listed on overseas stock markets in the financing of domestic capital markets have many adverse effects; we should eliminate barriers to small and medium-sized private enterprises listing in China, making small and medium-sized private enterprises listing on domestic market easily.According to the MM theory and the theory of corporate finance, financing a balance between theory and the conclusions of the new pecking order theories, if the company chooses external financing, equity financing should give priority to debt financing. However, the financing of small and medium-sized private enterprises is not a practical choice of the same. First, the small and medium-sized private enterprises have a risk of inconsistency and a serious level of information asymmetry, which conflicts with the assumption that the classical theory of corporate finance. Second, in China only the large state-owned enterprises can issue bonds directly which are abundant of funds, government support background. Obviously the financing of small and medium private enterprises to issue corporate bonds in undesirable ways. In addition, small and medium-sized private enterprises to apply for bank loans are also facing numerous obstacles.The small and medium-sized private enterprises can choose to list in the domestic market, but the Main Board listing criteria for size of enterprise and profits higher, the SME board in the business rules, Information disclosure lowered. The United States has the world's largest and most mature capital market and the stock market reflects its multi-level, the distinctive characteristics of different financing needs. By comparing the New York Stock Exchange, the American Stock Exchange, NASDAQ national market and small capital market and OTCBB listing of the securities market, SMEs are mainly suited for our small capital markets and the NASDAQ OTCBB market. In recent years, coupled with the strengthening of the Singapore Stock Exchange in China, more and more small and medium-sized private enterprises began to select Singapore equity financing. Conditions in the principal market listing criteria are more stringent than the second board market. Singapore's second board market's most important feature is the only requirement to be listed must have development potential. Such a low threshold of the listing will attract a large number of smaller, but good growths of domestic small and medium-sized private enterprises listed financing. Mainland enterprises listed in Hong Kong Stock Exchange may choose to issue H-shares directly to the public; most small and medium-sized private enterprises can also choose red chips listed on the indirect model. Small and medium-sized private enterprises, issuing H-shares listed in Hong Kong as a direct need to satisfy provisions of the China Securities Regulatory Commission and the Stock Exchange of Hong Kong Listing requirements, and implementation is not an easy task. Most of the development potential of small and medium-sized private enterprises has chosen to GEM financing.With urgent demand for the financing of small and medium private enterprises, currently listed in Hong Kong is the wise choice. China's small and medium-sized private enterprises have gone through three stages. By analyzing the history and current situation of small and medium private enterprises listed on the financing of several listed come to such enterprises. For example, preferred locations listed on the Hong Kong and Singapore markets, the listing of the purpose and motivation have gradually diversified. Indirect listed as the mainstream form of the listing of small and medium private enterprises. Listing of enterprises in coastal areas, focus on different industries has also shown a trend.From a long-term perspective, China should establish a multi-layer and multi-level integrity of the securities market. Specifically, the need to amend the relevant laws and regulations lowered the threshold for small and medium-sized private enterprises listed; Exchanges promote the process of internationalization of the territory, and gradually establish a multi-layer capital market. Further improve the system of listed issuers, reduce the cost of restructuring and listing of small and medium private enterprises.The main contribution of this paper is the unique nature of topics and research methods perspective. First, the domestic small and medium-sized enterprises in the present documentary evidence are not clearly defined. This paper defines the small and medium-sized private enterprises. Secondly, prefer to domestic small and medium-sized enterprises or private enterprises listed inside and outside the country, most of the literature cited concerns listed in the conditions and criteria and review. In this paper listing the pros and investment market will be a comparative analysis about where is the most suitable place for small and medium-sized private enterprises to be listed.