Practical Effect Analysis Of Xiaomi Group's Dual-class Share Structure Listing

Financing is a difficult problem faced by entrepreneurial enterprises.There is no collateral in the initial stage of entrepreneurship,and debt financing is extremely difficult;equity financing will cause entrepreneurs to lose their decision-making power.The two-tier equity structure newly introduced in China in recent years has brought new choices to entrepreneurs.For these innovative companies,the founders play a great role in the company.They understand the development status of the company at all stages of the life cycle and have their own goals and plans for the company's long-term development.Value enhancement and long-term development.Therefore,they are more inclined to adopt a two-tier equity structure.However,for a long time,my country's capital market did not allow companies to adopt such an equity structure,and the US capital market has relatively loose requirements for listing with a two-tier equity structure,so that many outstanding companies choose to list in the United States.It was not until 2018 that Hong Kong reformed its listing system,allowing the two-tier equity structure to be listed in Hong Kong for the first time.This reform also aroused the attention of the domestic capital market.This article analyzes a case from the perspective of theory and reality,combined with the listing of Xiaomi Group.It was discovered that the reasons why Xiaomi Group chose a two-tier equity structure to go public were mainly the needs of enterprise development and the founder's wish to hold a shareholding.Then,through the comparison of the two cases of Jobs and Apple,Wang Zhidong and Sina,it reflects the necessity of Xiaomi to choose a two-tier equity structure.Secondly,based on the perspective of financial performance,financial risk,market performance,and stakeholder perspective,comparative analysis,data analysis,financial indicators and other methods are used to analyze the effect of Xiaomi Group ' s dual-tier equity structure listing.The shareholding structure has a positive impact on Xiaomi Group.Finally,through the previous analysis,it is pointed out that Xiaomi Group's dual-level equity listing may bring some negative impacts,combined with the case of Xiaomi Group,to optimize the dual-level equity structure.