Cross listing issues research

Title
What Challenges Associated With Listing in China Stock Exchange? (Cross listing)
 
Abstract
In 2014, Alibaba Group, a Chinese-based e-commerce corporation, made its initial public offering (IPO) on the New York Stock Exchange (NYSE). Alibaba first planned to list on the Stock Exchange of Hong Kong (SEHK). After comparing the listing requirements in Hong Kong and in the United States, Alibaba eventually decided to list on the NYSE.
 
Part 1- Introduction (2 pages double space)
Thesis Statement:

• Alibaba Group decided to list in the United States to gain global brand recognition.

Background

• Service they provide
• Why not list in China

Purpose of Study:

• To discuss why a foreign corporation, especially a Chinese corporation, would want to be listed on the U.S. stock market.

 
Part 2- Research Context (1-2 page each)

1. Difference in listing requirements between NYSE and SEHK

1. 1. NYSE allows Jack Ma to maintain control of the company
2. Foreign companies listed on U.S. exchanges

• . Reasons

1. Challenges: converting language, currency.

1. Foreign companies listed in China.

• . The Shanghai Stock Exchange (SSE) plans to launch an international board

1. U.S companies listed on SEHK: Samsonite, Coach

• . Reasons: why would a U.S. company want to list on foreign stock market

1. U.S companies that operate in China but not listed on SSE or SEHK: Yum Brands (KFC), Starbucks.

• . Reasons

1. Challenges

 
Future Research Questions

1. How will the international board benefit foreign investors in China?
2. With the new listing requirements of SEHK, will Alibaba consider listing in Hong Kong again?

 
Conclusion