The reason is that when domestic A shares are listed, there will be more than N restricted shares, which limits the liquidity of new shares. In order to get more financing, they generally don't go public in China first.
Initial public offering (IPO) refers to the process that an enterprise issues shares to investors for the first time through a stock exchange in order to raise funds for enterprise development. When a large number of investors subscribe for new shares, they need to draw lots for allotment, which is also called drawing new shares. Investors who subscribe expect to sell at a price higher than the subscription price. In the environment of China, listing can be divided into three ways: China companies are listed in China or Shenzhen Stock Exchange (A shares or B shares); China companies go directly to overseas stock exchanges (such as new york Stock Exchange, Nasdaq Stock Exchange and London Stock Exchange) (H shares); China companies indirectly set up offshore companies overseas and listed on overseas stock exchanges in the name of offshore companies (red chips).