FinanceAsia What are the advantages to an ADR issue for a Chinese company
Tse There are two ways to list - via ADRs or a direct listing. A direct listing is complicated by having to form a company overseas and then using it as the listing vehicle. Then Chinese assets are injected. Some Chinese Internet companies, such as Sohu.com and Sina.com, did this at the height of the tech bubble, but from a regulatory perspective it's quite complicated.
There are also other downsides of a direct listing in the US. If a Chinese company is not listed on its primary domestic market, or at least Hong Kong, the company's home analysts won't...
