Why can domestic enterprises be listed in the United States?

For China enterprises, there are two ways to list on NASDAQ: IPO and reverse takeover (backdoor listing). In IPO, it is generally in the form of curve IPO. That is, domestic enterprises set up offshore companies or buy shell companies overseas, then inject domestic assets or rights into shell companies through capital arrangement and contract design, and then list and finance in overseas securities markets in the name of shell companies. Usually, offshore companies are registered in world-famous tax havens such as British Virgin Islands, Bahamas, Cayman Islands, Bermuda, Panama, etc., which can not only enjoy tax incentives, but also avoid the strict regulations of our government on overseas listing of enterprises. Sina, Netease and Sohu in the Nasdaq market are all listed in this way. In addition to IPO, China enterprises can also be listed on NASDAQ through reverse acquisition (backdoor listing). The so-called reverse takeover and listing means that domestic enterprises buy a listed company overseas as a "shell", and then the listed company reverse-acquires corporate entities outside Chinese mainland or Chinese mainland, and then the shell company realizes the refinancing function. Although the reverse acquisition and listing circumvents the domestic approval procedures, it is difficult and risky to inject assets into the business, and it is difficult to achieve the refinancing goal in the short term. For example, Yangling Bodison, a biotechnology company in Xi 'an, China, successfully landed on Nasdaq in this way and was successfully upgraded to the American Stock Exchange on August 25th, 2005. In this way, once the "China Concept" company determines the Nasdaq listing method according to its own strength, it can realize the listing plan step by step. Generally speaking, if a China company wants to be listed on NASDAQ, it needs to go through the following steps: filing an application, waiting for a reply, obtaining legal recognition, the Redherring stage of prospectus, roadshow and pricing, and then the IPO and listing stage. As long as the company meets the requirements of listing on Nasdaq and can attract the attention of international investors, it is not difficult for the company to list on Nasdaq. Because Nasdaq is a mature market, as long as investors expect listed companies to bring them returns, they will definitely enthusiastically pursue the shares of this company. As long as investors actively subscribe, listed companies can obtain funds at a high price-earnings ratio on Nasdaq. If a company wants to list on Nasdaq through reverse takeover, it will be a "long March" to obtain financing qualification. First of all, how to ensure that the company can buy high-quality "shell" resources under the condition of asymmetric information is a challenge for the company. Second, how to inject new business? How to ensure that the new business can be recognized by investors? In fact, it will be a challenge for China company to purchase the shell resources of the boss company, inject assets, and then improve the company's performance to achieve the effect of financing. Of the 23 "China Concept" companies on Nasdaq, 19 chose IPO and 4 chose reverse repurchase. The way these listed companies choose to go public itself shows the preference of China enterprises for listing on NASDAQ: compared with the investment cost, the amount and risk of obtaining funds, IPO is a more rational choice than reverse repurchase.