The Overseas Listing of Chinese Enterprises: Reasons and Choices of Listing Locations

Abstract As a large number of Chinese enterprises go abroad, overseas listing has increasingly become one of the key issues that need to be considered for Chinese enterprises during their development process. This paper aims to research why Chinese enterprises need to get listed at overseas exchanges and why Hong Kong should be the key listing market. Firstly, in the Chapter entitled Literature Review, the necessity of overseas listings of Chinese enterprises is analyzed based on international proven theories. Also, based on the in-depth analysis supported by the development and status of the Chinese enterprises listed in overseas markets, the paper concludes that Chinese enterprises should pursue overseas listings to achieve growth. With regard to the selection of method and place for Chinese companies���¢�������� Initial Public Offering (IPO), comparative analysis and a case study are combined to analyze the method of IPO available to Chinese enterprises, the respective features of the US, HK and Singapore exchanges and considerations for listing place selection, finding the home market most suitable to the Chinese mainland enterprises seeking overseas listings, i.e., Hong Kong market. In addition, a case study on the IPO initiative and post-IPO development of China Oilfield Services Limited (COSL, 2883 HK) is provided based on the above theory later in the paper, proving the conclusion that Chinese enterprises should now pursue overseas listings and first select the Hong Kong Stock Exchange to get listed, and providing a reference to the Chinese mainland enterprises seeking for Hong Kong IPO. Key words: mainland enterprises, overseas IPO, Hong Kong IPO, H-shar