Urgent Need for the Pre-IPO Review Mechanism of Chinese Companies Listing in the U.S.

Abstract

In the past 20 years, it seems very common for many Chinese companies to apply for listing in the United States. Some of them are affected by objective factors and some of them have their own financing needs. However, according to the research, it is found that the actual situation of such Chinese enterprises listed in the United States is uneven, and there are many well-known enterprises that have been exposed to financial fraud or other scandals. Based on the analysis of the reasons and situation of Chinese companies going to the United States for listing, taking the tension which has risen between Washington and Beijing into consideration, the author puts forward the conclusion that China needs to establish a pre-examination mechanism for Chinese companies going to the United States for listing.