Chinese Enterprises Listed In Singapore Study

With the further development of Chinese capital market and opening up process, in the background of economic globalization and international financial market integration, Chinese enterprises face a unavoidable fact that how to grasp the opportunities and use the international capital market, explore the international market, take part in the international division and competition and better development. On the other hand, the overseas IPO process for Chinese enterprises is not easy. How to choose the suitable capital market and deal with the IPO process obstacles and difficulties is a hot topic and urgent needs. In the several overseas capital markets, Chinese enterprises prefer Hong Kong and Singapore market, especially Singapore market. Because Singapore has the geographic advantage as Asian financial center and also the Chinese people as the majority, so Singapore market becomes the first choice for many Chinese private enterprises for overseas IPO. This thesis is as Singapore Stock Exchange (SGX) for example, fully introduce and illustrate the SGX IPO standards, mode, procedures, estimated expenses, the influence of government policies and listing company long term incentive mechanism issues. The thesis also makes some useful discussion according to author's practical experiences and lessons which will be helpful for the listed or ready listing enterprises to SGX.The thesis first introduces the Singapore financial market environment, basic information about Singapore capital market including the main-board and second board features, basic conditions, requirements, procedures, estimated expenses, etc, focus on main board. At the same time, through the comparison between SGX and other main capital market and Chinese capital market, fully introduce the main financing mode, legal restructuring modes and market performance for Chinese enterprises listing in SGX, and expresses author's opinion on these issues. In, addition, the thesis fully illustrates the Tenth Ordinance influence about Chinese enterprises going listing abroad which is jointly promulgated on 8th August 2006 by six ministries together. The Ordinance clearly requires the all Chinese enterprise listing abroad through Special Purpose Entity should be approved by the relevant ministries which have huge impact for going listing abroad enterprises and increases the cost, timing and uncertainty for overseas IPO. The comprehensive illustrates the impact for going listing abroad enterprises and aims at asking relevant government authority to create a relevant good legal environment for going listing abroad enterprises, and lets the excellent enterprises to active take part in the international competition and further enhances private enterprises role in promoting national economy.It is a focus of the forth section in the thesis. The author deeply analyzes the financial and accounting, legal, corporate structure, good corporate governance, the restructure of the board of directors and other IPO difficulties and obstacles. These problems always delay the listing process, and even miss the optimal listing opportunity. The main two causes are: 1) The enterprise does not know how to meet the SGX IPO requirements; 2) The enterprise does not know how to resolve the above-mentioned problems properly. In which the setting up and effective performing of internal control and the improvement of corporate governance is common outstanding issues. It is a relatively short time in the construction and development of internal control aspect for Chinese enterprises. Generally speaking, it exists the common problem in the control environment, risk awareness, information communication, supervision mechanism, building of corporate culture, etc. This section in the thesis targets all the problems and performs deeply analysis and puts forward a set of specific solutions and suggestions. These solutions and suggestions include the improvement of SGX management system, strength the function of professional organizations, organization reconstruction of the company and restructure of the Board, enhancing the duty and responsibility of management team, the supervision of government authority, public and employees, and so on.Finally, the thesis fully explains the shares incentive mechanism issue for overseas listing enterprises. It is well know that the shares based long term incentive mechanism is a trend in the international capital market. Because good incentive mechanism will mobilize the activity and creativity of the management and combine the interest of shareholders, individuals and the company together, reduce the short term behavior of management. More and more listing companies will adopt the shares based long term incentive mechanism in future. Chinese enterprises will deal with this issue in the overseas IPO process. The shares based incentive mechanism is being paid attention by the market in recently years and still in the theoretical probing stage, less of successful experiences and needs continuous discussion and improvement in practice. Currently only limited Chinese enterprises adopt incentive mechanism and mainly stock options and stock appreciation rights mode, so it is hardly to realize the real meaning shares incentive mechanism. The thesis also makes some useful discussion according to author's practical experiences and lessons and proposes some suggestions and advices.