Research On The Systerm Of China's Capital Market In Supporting Innovation Enterprises-From The Domestic Internet Enterprises Listed Overseas

Science and technology is the most important driving force to economic and social development. LI keqiang prime minister pointed out that we must promote innovation-driven development strategy, deepen the technology combined with the real economy, improve the competitiveness of our country's economy. Science and technology innovation are represented by the Internet industry.China must pay attention to the development of the domestic Internet enterprises.economy,if we want to achieve a Qualitative leap under the global information technology revolution overtaking.In 1999,The China Company which is the first Internet company of China listed in Nasdaq.From then on, Chinese Internet companies have been to listed overseas.Today, China's Internet companies have been successfully listed abroad more than 30 in the past more than ten years.Companies listed overseas include Alibaba, Baidu, Tencent and so on.Internet companies need a steady stream of capital injection to Support growth, including direct financing and indirect financing. Internet that at the start-up stage can not reach the credit standards of commercial Banks because of its own characteristics, so t hey can not get commercial bank loans. If companies want to develope from hatching to mature stage, sharing issue is the most important financing channel. However, the domestic capital market set strict profitability requirements for companies which want to list in domestic market, and Internet companies often exceeds the funds at the start-up stage, therefore, Internet companies in China can not IPO in domestic market under the current system design. Foreign capital market take it more important to the prospect of future development and growth of companies,so the standard of listed companies rarely set profitability for it. Foreign venture investment in our country is much higher than domestic venture both in the total amount of money and numbers,venture capital investment which invest Internet companies hope that these enterprises get high returns by listing,China's authorization before IPO exit channel distribution system in enterprises, overseas listing can make foreign venture capital smoothly out of earnings. Capital markets overseas have more perfect information disclosure mechanism and mature mode of corporate governance, Chinese Internet companies can control right of management while maintaining enterprise in financing through the overseas listing.The market have developed a mature supervision system and information disclosure under the practice registration system, which will help Chinese Internet enterprise improving its governance structure that is advantageous to the company long-term development. The phenomenon that Internet companies have listed overseas in large-scale shows the shortcomings of our capital market.It is important for us to ponder why these companies listed overseas.The registration system in the United States is conducive to enterprise financing in capital market. Long for examination and approval of the approval system, issuers, enterprise finance It is difficult for enterprise to finance under the examination which character for substantial review. What the difference in legal system between China and the United States promotes domestic Internet companies to be listed overseas. On account of equity structure system differences between the two countries, Internet companies prefer the double system of equity.It is worth pondering that how to draw lessons from foreign experience to reform and improve the system of capital market in China. First we should accelerate the process of reforming registration system and clearing and definiting registration system reform path.Then what we should do is perfecting the related system such as Information disclosure system and Investor protection system.Last, we need to innovate multiple equity system reform at the appropriate time. Only improving the system of our country capital market for the innovative enterprise growth and cultivating a good environment, can we retain and attract high quality local Internet companies and innovative enterprise,promoting China's economic transformation.