The vast majority of the world's largest corporations have
already established their presence in China through joint
ventures, direct investments, sales networks and various other
means. Now they are also looking to China for financing their
Unfortunately, access to China's capital markets,
particularly its stock markets, is limited for foreign
corporations. First, only companies incorporated in China are
eligible for listing on China's stock markets.
Second, financing Chinese ventures directly through China's
stock markets is made difficult by stringent listing and
post-listing requirements of China's stock markets, especially
with respect to financial criteria. Therefore, companies
wishing to finance their Chinese ventures are well advised to
consider alternative means.
As a general rule, offering and selling securities in China
is subject to registration with and approval by the relevant
Chinese authorities. In accordance with the China Securities
Law, securities consist of shares, bonds, investment fund units
and securities-related derivatives....