Papers RESEARCH

Research into the Rule of Law over Offshore Companies’Cross-listing in China:

from the Perspective of the Return of Red Chips

Lena

2019-10-11 02:22

Wu Jin
Jianghan Academic

AbstractThe opening of the capital market to the outside world is one of Chinas important national development strategies in the new eracross-listing is both a major means of capital transfers around the world and an important indicator to measure the degree of openness of a countrys capital market. Currentlya safer approach for cross-listing in China is first to pilot direct listing of red-chip companies domestically and then expand to all foreign companies while systematically establishing a set of relevant rules over the international- board market. Under the requirement of rule of law in financelisting qualifications should be clarified and regulated in the framework of the security law and corresponding listing criteria should be set according to different legal factors to effectively reflect the characteristics of cross-listing and to attract high-quality red-chip companies to return. Direct listing procedures can be appropriately simplified and efficiency be improved for red chips in the context of different marketsregulations and their performances and information that the companies have disclosed. General or fundamental standards of other countriesmature information disclosure systems should be taken as a reference and differentiated rule design for the disclosure should be made according to the characteristics of red-chip enterprises.

Key wordsopening upcross-listingred-chip companiesfinancial securityrule of law in finance

The Chinese version appeared in  Jianghan Academic, 2019(02).


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2019-10-11 10:22
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A Brief Introduction to Li Bai's Research