Go to where, 58 the same city landed on Nasdaq's first day was hit by a boom in shares

This is the best of times, where to go (NASDAQ:QUNR), 58 of the same city (Nasdaq:wuba) landed on the Nasdaq on the first day of the hot-holding shares soared.

It was also the worst of times, with stocks frequently shorted by short institutions, and NASDAQ:NQ's share price plunged after being shorted by Muddy Waters.

In addition to the recent landing on Nasdaq, the two auto shares, November 5, also came the domestic auto information website to the NYSE submitted a prospectus to the news.

In this wave of stocks to the United States listed in the emergence of the tide, is placed high hopes to break through a long period of ice and the success of the market performance behind the reverse attack, the stock is still facing the listing of regulatory environment to be improved, the challenges of the huge pressure and other difficulties.

Small red chip regulation still to be improved

The list of Chinese technology companies, which is expected to be listed in the US by the end of this year, is still growing, including 500 lottery nets, Sohu videos, and home lodgers.

In the domestic regulatory agencies to push overseas listing, whether the force is due to the supervision or market-driven behavior?

At present, China's overseas listing is divided into two direct and indirect, of which the indirect listing is also known as red chips listed, is still the mainstream, the above mentioned stocks more in this category.

Currently, for overseas listing, 6 departments such as the SFC and the Foreign Exchange Bureau jointly issued the Regulations on the merger and acquisition of domestic enterprises by foreign investors (article 10th).

December 20, 2012, the China Securities Regulatory Commission canceled domestic enterprises to the overseas listing of "456" restrictions, but the "456" limit only to direct listing abroad. As for the listing of the small red chip structure, except for article 10th, only the 75th text of the foreign Exchange Authority is bound in China.

De Heng Law firm Li Zhongxuan lawyer said to reporters: "I think this time so many companies to the United States is a market-oriented factor, not the regulatory level intended to promote the." After two years of ice, the crisis has passed, and for the Internet companies can not be in the domestic IPO, the U.S. capital market is a good opportunity. ”

Guangdong Guohui Law firm by Yucai lawyer also said to reporters: "From the big environment, the approval of overseas listing is not a substantial change, so far there is no substitute for the 10th document appeared to guide the current situation outside the listing." ”

"The cancellation of the 456 limit does not have a substantial effect on companies that take small red chips, and it is helpful for companies that have some financial or structural difficulties with companies that are listed directly, and I hear that there is a private enterprise that has been approved for direct listing abroad." "One of the listed intermediary agencies to the United States, said to reporters.

Li Zhongxuan said: "The current listing to the United States is usually the use of VIE structure, is small red chip way." This approach is not regulated by the SFC, so the climax of the IPO in the US is not related to the CSRC's lifting of the 456 limit. ”

"At present, the only administrative approval for the small red chips is to register with the Board, and the relevant guidance document is 75th." The situation of the Foreign Management Bureau is different, but I understand that if the company wants to record a successful filing, it still has to do some work. "Li Zhongxuan said.

Small red chip structure overseas listing can basically evade domestic examination and approval standards, at the same time than the foreign direct listing of the standard is much lower, so the small red chip listing is still the main theme of the current overseas listing.

A domestic a-share IPO has been closed for several days, so a small number of companies will also choose to finance overseas listings.

After Yucai to reporters: "I understand the situation, on the one hand, if some enterprises to go abroad to promote the development of domestic industry, on the other hand, the domestic IPO gate is slow to open, the domestic enterprises can not through the form of IPO financing." In view of this time node, the regulation and approval still have some appropriate loosening, but from the quantity above is still very few. After this point in time, I think the regulatory layer needs to introduce relevant documents or policies to replace the 10th text to guide the company to go public. ”

"Short industry chain" pressure

Two stocks on the first day of the stock market soared also can not cover up before the embarrassment of the Qin was short.

"The same is listed overseas, and the Hong Kong-listed H-shares compared to the U.S. listed in the stock is almost not short, Chinese companies in the U.S. capital market influence still not." "A person who has long been in charge of the intermediary structure of the enterprise's overseas listing," analysts said.

In addition to the recent encounter muddy water short of the Net Qin, before there are Qihoo 360 (Nyse:qihu), New Oriental (nyse:edu) and other well-known domestic enterprises in the middle of the short wave in the gun.

The reason behind this is that, in the opinion of the intermediary, it is "there is a short soil here, the short mechanism in the U.S. market has formed a complete industrial chain."

Li Zhongxuan told reporters: "Short is the market mechanism of the United States, not because of moral factors to short the company." Here is the purpose of making money inside. A few stocks that have recently landed in the U.S. capital markets where there are 58 of the same city are well-known internet companies, these companies can not rule out the future by the short of the company's eyes, such as delayed submission of periodic reports and many other factors can be used to short. ”

However, the most critical factor lies in the qualification and concept of the stock itself.

A person to the U.S. listed advisory body said: "At present, the intermediary agencies to pay a certain responsibility for this, they failed to do their job and let short institutions have the opportunity to take advantage." At the same time, corporate bosses can not be exempt from the U.S. regulatory philosophy, culture and law lack of understanding, feel that the better the better the price will be higher. ”

This is just the pressure from spontaneous shorting, and the regulatory pressure on the regulator is growing.

China Securities Regulatory Commission, China Ministry of Finance and the U.S. Public Company Accounting Supervision Committee (PCAOB) had signed a memorandum of law enforcement cooperation, the implementation of accounting audit Cross-border law enforcement cooperation, China will have the conditions to provide accounting papers. The Chinese have already begun to provide the manuscript.

PCAOB consultant Paul Gillis said in an interview earlier: "The acquisition of accounting papers and the future of PCAOB, the SEC and China's continued cooperation will directly promote the next 5-10 years Chinese companies listed in the United States." "The future PCAOB and SEC will sanction audited firms and expose the company's financial fraud by seeking on-site verification and accounting papers." ”