Storm technology landing a A-share gem, internet companies landing A shares in the advantages of where?

Yesterday, the storm technology landed a-share gem, the opening Rose 43.98%. In the pre-IPO subscription, its online distribution initial subscription multiples reached 655.55 times times, set the gem since the launch of the highest record since 2009. IDG Asia's president, Shong, appeared on the market, saying Storm technology was the first Internet company to release the VIE structure and return to a-share listing. Cai, another angel investor, said directly that storm technology might trigger a return to the stock-a-share wave.

A-share listing is difficult to do
in people's impression, if the Internet companies seek listings, U.S. stocks or Hong Kong stock market is preferred. The reason is that most Internet companies have invested in dollars, all in the VIE structure. This is not in line with domestic requirements. The
Vie structure, also known as "Protocol Control", is the actual or potential economic source owned by the enterprise, but the enterprise itself has no complete control over this interest entity. This is not a temporary existence, Sina is the first to go through the VIE architecture this road and successfully listed in the United States, since then, the VIE structure has become China's internet companies listed overseas almost the only way.
So why does the VIE structure pose an obstacle? This is because this seemingly perfect structure is a problem for domestic regulation. The controlling shareholder, the actual control person and so on do not know how to check. Even more troubling is the complexity of capital flows, and the legitimacy of special commitments, such as betting clauses, that often exist in equity arrangements cannot be verified. This structure is therefore not acceptable in the country.
2006-2008, Storm technology at the time of the operating platform has accepted IDG, matrix total more than 20 million U.S. dollars of investment. In 2011, IDG, Matrix exit Storm Technology, 2012 VIE structure completely lifted, Storm technology announced will be listed to change to a shares.
In addition to changing the VIE structure, companies that want to list on the mainland must be profitable and increase their profits every year. But internet companies are struggling to meet such a profit requirement. In terms of profitability, the US Nasdaq market has no limits.
Storm Technology This landing a A-share, but also by some media dubbed as "severed arm." Storm Technology Vice President Wang Gang previously said that the storm audio and video, unlike other sites, not by burning money to buy exclusive to seize the market. The relative reduction of copyright costs, is undoubtedly for the storm technology listed escort.
Storm technology director Bishing also revealed some problems with the storm's return to a shares. "First of all, the renminbi fund to buy the dollar funds, this is the core, but also in line with the Government's relevant regulatory policies and tax policies." "
Of course, there are some difficulties in the process. The domestic listing adopted is the approval system, and in the United States registered listing is completely different, long one or two years of lengthy approval system is not every internet company can afford, if they were waiting to be listed in the domestic market, it is estimated that the dotcom bubble period died. The front hundreds of companies lined up to wait, at least Yinianbanzai. Besides, there is no system and precedent for opening green channel for Internet industry.
Some people in the industry pointed out that the A-share listing audit standards is still the core of manufacturing, difficult to adapt to the development requirements of emerging internet companies, which is the Internet companies overseas listing is one of the reasons.
What is the advantage of Internet companies landing a shares?
Storm Tech finally landed a A shares also have their own plans. A-share market thanIt has its own unique advantages overseas.
On the one hand, the majority of users of Internet enterprises or in the domestic, listed in a shares, is closer to the user. Storm Technology vice President Wang Gang before the Tencent Technology interview said, "Storm audio and video users mainly concentrated in the domestic, can not be isolated for the sake of money users." "IDG founding partner Shong that compared to the U.S. shareholders, domestic investors to the Chinese companies more understanding." This is why many domestic internet companies are grossly undervalued in the US stock market.
on the other hand, the mainland's money is desperate for quality internet companies, and mainland capital markets can give internet companies a higher price/earnings ratio. Tencent is 30 times times more in Hong Kong and 220 times times more in China. More money will be available for domestic listings. The
, coupled with the recent period of time, has the intention of releasing reforms. SFC spokesman Xiaojun March 12, said SFC to support the overall conditions of the Internet, science and technology innovation Enterprises in the shares listed, for the non-profit enterprises first to the stock system listing 1 years later to the gem listing, is actively studying the process, the relevant rules will strive to launch as soon as possible, if it involves the adjustment of the existing regulatory measures, The necessary statutory procedures must also be fulfilled.