Galactic Tech Empire

Chapter 258 Delisting tide
If we say that holographic devices are sweeping the world from February 2019.

Then in February 2019, it was also the beginning of the delisting of a Dongtang company from the Milijia stock market.

A large number of domestic Internet companies have voluntarily filed applications for delisting from the three major stock markets.

At present, there are 223 Dongtang listed companies in Mimi (excluding companies that have been delisted), and a total of 227 stocks have been issued.

So how many listed companies does Milijia have?
The New York Stock Exchange has nearly 3000 listed companies on the New York Stock Exchange. Generally, companies listed on the New York Stock Exchange can be considered relatively good listed companies.

And the Nasdaq we often hear, this stock market is equivalent to the domestic small and medium-sized board and the ChiNext board, and there are nearly 4000 companies on it.

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

Therefore, there are about 7000 listed companies in Milijia.

Among the domestic companies listed on Milijia, Internet companies account for the most.

Companies like Ali, Qiandu, Sina, 360, Netease, Sogou, Shanda, and Jingdong are all listed on Milijia.

Then why are domestic companies keen to go public on the Mi Lijia stock market?
When a company goes public in China, its valuation is several times that of Milijia, and the funds that can be raised are of course several times that of foreign companies. Isn’t the purpose of a company going public for financing?

So much capital can be raised in China, why are there no foreign companies listed in the country, but there are still many domestic companies going to Mi Li’s home for listing?
It's not that foreign companies don't want to come, but that they can't meet the requirements, and they can't afford the time if they meet them. It's a bit heartbreaking to say the least!

The difference between listing on Misha and domestic listing:
First time cost above.

The listing of Milijia is a registration system, and it takes less than 10 months to complete a set of procedures, and it will take about 4 months as soon as possible.

In China, it used to be an average of 30 months. If you are unlucky, you may wait three to five years.

We must know that a company is in a period of rapid development in the past few years. At this time, the financial data of the company may change greatly every year.

If it takes two to three years to go public in China, it is very likely that the listing data will have to be revised, which will take time to find an audit.Whether to slow down the development speed to cater to the data, or find an audit to modify the data, both are not good for the enterprise.

In addition, the high-speed development period of an enterprise needs financial support the most. Obviously, in this respect, the stock market of Milijia is much better than that in China.

The second is the listing threshold.

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

This is a very important point that restricts many domestic companies from going public in Milijia. Listing in China requires continuous profitability in the past three years, but Milijia does not have this requirement, as long as it can be profitable in the future.

This is the case for Qiandu, Jingdong, Penguin, iQiyi, etc. In the early stage, they only focused on occupying the market and did not care about profitability. support.

The third is the stock market system.

Milijia allows the same shares to have different rights (Ali went to Milijia for listing because of this, and Wheat went to Xiangjiang after the change of the Hong Kong stock market system).

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

There are still many regulations of this kind, which are very restrictive to enterprises, and Milijia is relatively loose.

The fourth is the regulatory system.

Compared with domestic companies, Milijia’s regulators only fulfill their supervisory responsibilities, and foreign shareholders can play the role of inspection. As long as the company has problems, a small shareholder can sue the listed company.

And many lawyers like to take this kind of lawsuits for free. The bigger the company's reputation, the more lawyers like it, provided you have evidence.

If you win the lawsuit, you will be paid and have a reputation, which objectively plays a role in supervision.

The fifth is the difference in shareholder structure and trading system.

Milijia’s stock market has a history of 200 years, and the structure of shareholders is more reasonable. More than 70% of them are operated by institutions. They pay more attention to fundamental research and focus on value investment.

Even retail investors mainly focus on long-term investment, and few do short-term speculative transactions.

In terms of trading system, everyone knows that Mi Stock is a long-short two-way mechanism, and there is no limit on the rise and fall of T+0.

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 is openness and influence.

The Milijia stock market is an international market. Companies from all countries can go public, and free funds can invest.

Compared with the domestic market, Milijia can gain a higher reputation after it goes public.

Moreover, due to its large size, sound system, stable economy, and relatively stable stock market environment, Milijia's stock market can maintain a long-term bull market pattern, which is undoubtedly a fatal benefit for listed companies' financing.

This is also the reason why many domestic Internet companies choose to go public at Mi Lijia, regardless of the problems on the domestic A-share market.

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

In fact, some domestic companies listed on the rice stock market have reached the point where they have to delist.

For example, Ali Group, the current shareholding ratio of Tianhan Group has risen to 33.7%. In addition to the shares held by other major shareholders, the shareholding ratio of major shareholders has almost triggered the delisting mechanism of rice stocks.

Ali, Sanxin, and Taijidian announced the privatization and delisting of the rice stocks at the end of February.

Although the management of the rice stocks has repeatedly tried to persuade them to stay, the three companies are still resolute and announced their delisting plans.

And this incident immediately became a trigger, and a large number of companies closely related to the Galaxy Consortium chose to be privatized and delisted.

The reason for the chain reaction is that rice stocks have been red in the past two years. Among the rice stocks, Amazon, Microsoft, Google, Intel and other technology stocks with a market value of more than [-] billion have almost lost their market value.

In addition to the acquisition of Sydney, which has been brought back to life, other stocks are now falling, among which semiconductors and the Internet are the most serious.

At present, Amazon is the most valuable in the rice stock market, and Sydney is the second. The stocks of some other technology companies are in a half-dead state.

Considering the future situation, the stock market of Mi Lijia may remain in a downturn for a while. Many domestic companies listed on Mi Stocks have chosen to buy back shares or go privatized and delisted.

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

……

Hangzhou West Lake, Ali headquarters.

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

Ma Jieke raised his brows: "I will not consider listing in A shares for the time being."

After all, Ali's shareholding structure is doomed to be difficult to list on A-shares. After all, A-shares require the same shares and the same rights. Once listed in China, Ali's management may lose control of the Ali Group. This is unacceptable to them.

Although Tianhan Group controls more than one-third of Ali's shares, Tianhan Group has no ability to control Ali, only financial supervision and the like.

Even if it is a re-listing, Ali may also choose the Xiangjiang stock market, but the situation in Xiangjiang has been turbulent recently, and Ali is not considering re-listing for the time being.

(End of this chapter)