About listing
What we usually call listing is initial public offering, that is, (IPO), which refers to the process that enterprises issue shares to investors for the first time through the 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 context of China, listing can be divided into three ways: China companies are listed in China or listed on Shanghai and Shenzhen stock exchanges (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).
Generally speaking, listing is a process in which companies land on the main board, small and medium-sized board and growth enterprise market, and publicly issue shares to investors through the stock exchange in order to raise funds for enterprise development.
Many entrepreneurs will have questions. Since the listing of the new fourth board is not a listing, what's the use of listing?
This suspicion is normal. We must know that although some companies, including the New Third Board, are listed, financing is still in an embarrassing "zero" transaction record. There are many reasons, one is the enterprise itself, and the other is the platform.
For the new fourth board, the risk is obviously much lower, mainly because of the low threshold. Enterprises that meet the listing requirements of the New Fourth Board generally only need tens of thousands of dollars to enter the fourth board market, which is not an order of magnitude with the threshold of millions of New Third Board.
The benefits of listing on the New Fourth Board include: enterprises can enjoy policy dividends, prepare for the transition to the New Third Board or IPO (GEM, SME board and main board), display services for enterprises, expand financing channels, increase enterprise capital, realize enterprise value, enhance brand value, improve credit rating, standardize enterprise management and expand enterprise contacts.