Companies in China
can list on the Shanghai Stock Exchange (SSE)
, one of the two available independent stock exchanges in the People’s Republic of China. The SSE is the most successful stock market in Mainland China in terms of listed companies, total and tradable market value.
A company that wants to list shares on the Shanghai Stock Exchange
must first make an initial public offering (IPO). The decision to list a company in the stock exchange is an important one and it represents a significant change for the company. Our Chinese lawyers
can help you list your company on the Shanghai Stock Exchange
Listing requirements and procedure
A Chinese company has to meet the following listing requirements in order to be admitted to the Shanghai Stock Exchange:
- make an initial public offering;
- have its shares issued to the public and approved by the China Securities Regulatory Commission;
- have a total stock capital of no less than 50 million RMB (approximately 7,3 million EUR);
- its publicly issues shares are no less than 25% of its shares or 10% of the total capital stock is more than 400 million RMB;
- have no false financial and accounting records and no legal violations within the last three years.
Before a company can list securities on the SSE, it must obtain an approval from the China Securities Regulatory Commission’s (CSRC)
issuance and examination and verification committee. According to the listing procedure for the SSE, the applicant must contact the listing department or the bond funding department and apply for a securities code and a securities trading abbreviation. After obtaining the approval documents, the applicant must submit an issuance program and an issuance plan to the SSE.
Our Chinese attorneys can help you observe all the necessary steps for listing a company in the Stock Exchange in Shanghai.
Listing application and fees
Several documents must be submitted to the issuance and listing department of the Shanghai Stock Exchange when making an application to list shares. The most important documents required are as follows:
- share listing application;
- the approval documents from the CSRC;
- the resolution of the board of directors and the shareholder’s meeting regarding the issuance and listing of shares;
- a copy of the company’s business license and its articles of association;
- the company’s financial and accounting reports for the last three years, audited.
These are just some of the documents required by the SSE. Our law firm in China can provide you with a complete list of the required documents.
The initial listing fee for A class shares is 0.03% of the total par value listed, no more than 30,000 RMB. The annual listing fee for A class shares is 0.12% of the total par value listed, but no more than 6,000 RMB.