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Chapter 258 Delisting tide

If we say that starting from February 2019, holographic devices are sweeping the world.

Then February 2019 was also the beginning of the delisting of a Dongtang company from the MiLijia stock market.

A large number of domestic Internet companies have taken the initiative to apply for delisting from the three major stock markets.

At present, there are 223 companies listed in Dongtang in the United States (excluding companies that have been delisted), and a total of 227 stocks have been issued. There are about 7,000 listed companies in the United States.

So how many listed companies are there in Milijia?

There are nearly 3,000 listed companies on the New York Stock Exchange. Generally, companies listed on the New York Stock Exchange can be considered relatively good listed companies.

The Nasdaq we often hear about, this stock market is equivalent to the domestic small and medium-sized board and GEM, with nearly 4,000 companies on it.

However, new companies are listed every day and some are delisted every day, so the number is not very accurate.

So there are about 7,000 listed companies in MiLijia.

Among the domestic companies listed on MiLijia, Internet companies account for the largest share.

Alibaba, Qiandu, Sina, 360, NetEase, Sogou, Shanda, and Jingdong are all listed on MiLijia.

So why are domestic companies keen to list on the Milijia stock market?

When a company is listed in China, its valuation is several times that of a company listed on Milijia. Of course, the funds it can raise are also several times that of foreign companies. Isn’t the purpose of listing a company just to raise funds?

With so much capital raised domestically, why are there no foreign companies listed in the country, but many domestic companies have come to MiLijia to go public?

It’s really not that foreign companies don’t want to come, but that they can’t meet the requirements, and even if they do, they can’t afford the time, which is a bit heartbreaking to say!

The difference between listing on Mi stock and domestic listing

First time cost is above.

MiLijia's listing is based on a registration system. It takes less than 10 months to complete a set of procedures, and it can be completed in about 4 months at the fastest.

In China, the average was basically 30 months in the past. If you are not lucky, it is possible to wait three to five years.

You must know that a company is in a period of rapid development only a few years ago, and the company's financial data may change drastically every year.

If a domestic listing is delayed for two or three years, it is likely that the listing data will have to be revised, which will take time to find an audit. Either slow down the development speed to cater to the data, or find an audit to modify the data, both of which are detrimental to the company.

In addition, an enterprise needs financial support most during its period of rapid development. Obviously, in this regard, the MiLijia stock market is doing much better than the domestic market.

The second is the listing threshold.

MiLijia's stock market listing focuses on the future, while in China it focuses on the past.

This is a very important point that restricts many domestic companies from going public in MiLijia. Domestic listings require sustained profits in the past three years. However, MiLijia does not have this requirement, as long as it can make profits in the future.

This is the case for Qiandu, Jingdong, Penguin, iQiyi, etc. In the early stage, they only focus on occupying the market and do not care about profitability. This is stuck outside the door of the big A, and this period is often the most in need of funds.

support.

The third is the stock market system.

Milijia allows the same shares to have different rights (Alibaba went public in the United States for this reason, and Maimai went public in Hong Kong after the Hong Kong stock system changed). There is no legal provision for the lock-up period, but it is similar to the agreement, which is usually half a year.

Unlike China, which has express regulations, it is generally three years, and the proportion of tradable shares issued in the listing is also expressly stipulated.

There are many more regulations of this type, which impose great restrictions on enterprises, but MiLijia is relatively loose.

The fourth is the regulatory system.

Compared with domestic ones, MiLijia's supervisors only perform supervisory responsibilities, and foreign shareholders can play an inspection role. As long as there is a problem with the company, a small shareholder can sue the listed company.

Moreover, many lawyers like to take on this type of lawsuit for free. The greater the company's reputation, the more lawyers like it, provided you have evidence.

If you win the case, you will be rewarded and gain fame, which objectively serves as a supervisor.

Fifth, the shareholder structure and trading system are different.

Milijia's stock market has a history of 200 years. The investor structure is more reasonable, with more than 70 institutions operating it. It pays more attention to fundamental research and focuses on value investing.

Even retail investors mainly invest in long-term investments and very few engage in short-term speculative transactions.

In terms of trading system, everyone knows that rice stocks are a long and short two-way mechanism, and there is no limit on the rise or fall at t0.

In this environment, the stock price can quickly find a reasonable valuation range, which is conducive to the stable development of the company.

The sixth aspect is openness and influence.

The MiLijia stock market is an international market where companies from all over the world can be listed and free funds can be invested.

After being launched on the market, MiLijia can gain higher visibility than domestically.

Moreover, due to its large size, perfect system, stable economy, and relatively stable stock market environment, the Milijia stock market can maintain a bull market pattern for a long time, which is undoubtedly a fatal benefit for the financing of listed companies.

This is also the reason why many domestic Internet companies choose to go public on Milijia, regardless of the problems with domestic A-shares.

But this time Dongtang Internet Company chose to delist, not for A-share listing, but for privatization.

In fact, some domestic companies listed on the Mi Stock Exchange have reached the point where they have to delist.

For example, in Alibaba Group, Tianhan Group’s shareholding ratio has risen to 337. Adding the shares held by other major shareholders, the shareholding ratio of major shareholders has almost triggered the delisting mechanism of rice stocks.

Alibaba, Sanxin, and Taiji Electric announced their privatization and delisting from the US stock market at the end of February.

Although the management of Mi Stocks repeatedly tried to persuade them to stay, the three companies still took the weight and announced their delisting plans.

This incident immediately became a trigger, and a large number of companies closely related to the Galaxy Consortium chose to privatize and delist.

The main reason why it triggered a chain reaction is that rice stocks have been booming in the past two years. Among rice stocks, Amazon, Microsoft, Google, Intel and other technology stocks with a market value of more than 100 billion have almost halved their market value.

Except for Sydney, which was acquired, and has come back to life, other stocks are now plummeting, with semiconductors and the Internet being the most serious.

Currently, Amazon ranks first in market value in the US market, followed by Sydney in second place, and the stocks of some other technology companies are half-dead.

Taking into account the future situation, many domestic companies listed on the stock market have chosen to buy back shares or privatize and delist.

It can only be said that the delisting of Alibaba, Sanxin, and Taiji Electric has strengthened the minds of many people.



Hangzhou West Lake, Alibaba Headquarters.

"Jack, the management of the A-share Securities Regulatory Commission met with me yesterday to test whether we have the idea of ​​listing on the A-share market." Zhang Xiaoyao said with a wry smile.

Majek raised his eyebrows and said, "We are not considering listing on the A-share market for the time being."

After all, Alibaba's shareholding structure is destined to be difficult to list in A-shares. After all, A-shares require the same shares to have the same rights. Once listed in China, Alibaba's management may lose control of Alibaba Group, which they cannot accept.

Although Tianhan Group controls more than one-third of Alibaba's shares, Tianhan Group does not have the ability to control Alibaba and only has financial supervision rights.

Even if it is re-listed, Alibaba may choose the Xiangjiang stock market. However, due to the recent turmoil in Hong Kong, Alibaba is not considering re-listing for the time being.


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