Translator：Wang Qiyu

On November 13, 2020, Shanghai Landing Law Offices successfully hosted its 29th Lawyers' Salon. Senior Partner Sun Xian conducted a seminar titled "When We Discuss Going Public, What Are We Talking About?" The event, enthusiastically presided over by Senior Partner Gao Qing, generated a dynamic atmosphere.

Attorney Sun Xian serves as the Deputy Director of the Landing Financial Department and a member of the Securities Core Committee. He is also a member of the Financial Instruments Research Committee of the Shanghai Bar Association and holds qualifications in securities and fund practices, as well as being a qualified independent director of the Shanghai Stock Exchange. With extensive experience in handling various IPO projects since 2007, Attorney Sun has provided legal services to multiple prospective and listed companies, amassing a wealth of expertise in the field of corporate listing. In this session, he introduced the captivating "Ant Group IPO" incident, leveraging his practical experience to discuss fundamental aspects of enterprise listing, key points, and critical issues.

Key Insights Shared:

I. What Is Going Public?

Sun delved into essential concepts related to going public, including its definition, main participants, whether listing on the Innovation Board equates to going public, the locations and sectors for listing, distinctions among various sectors, and the implications of a registration-based system. Against the backdrop of registration-based reform, capital markets have received increasing attention, particularly as a favorable opportunity for enterprises to enhance listing efficiency.

II. Why Go Public?

Sun Xian elucidated the motivations and benefits behind an enterprise's decision to go public from a developmental perspective. Addressing whether going public is an essential path for growth, Sun provided a positive response, supported by a thorough analysis. Addressing Huawei's absence from the stock market, he noted that Huawei's unique development path lacks universal applicability. For enterprises with long-term strategic goals, going public is a crucial step towards expansion.

III. How Does a Company Go Public?

This segment represented the core of the seminar, with Sun Xian categorizing his presentation into four sections: (1) issuance and listing criteria, (2) critical legal aspects of going public, (3) listing procedures, and (4) intermediaries and costs of issuance.

Regarding issuance and listing criteria, Sun detailed common conditions for issuance and listing across sectors, financial indicators, industry prerequisites, and core considerations for each sector. Discussing the legal intricacies, he focused on property rights and land use rights, equity, legality, and independence during the going public process. Sun then delineated the five stages of going public, the audit process for the Main Board, SME Board, ChiNext, and STAR Market, and the intermediary institutions and costs necessary for an enterprise to go public. He underscored the significance of satisfying issuance and listing criteria as the critical factor for enterprises considering going public. Beyond business development, early planning and the engagement of experienced intermediaries are essential to avoid pitfalls and disruptions in the listing process.

IV. How to List Overseas?

Sun Xian provided insights into various approaches to overseas listing, the locations and conditions for overseas listings, associated costs, and establishing a red-chip structure.

Currently, overseas listing remains an important avenue for domestic enterprises, making it crucial to determine the listing location and initiate corresponding structural preparations at the outset.

Interactive Discussion:

Following the conclusion of the thematic presentation, the attendees engaged in enthusiastic discussions with Attorney Sun Xian regarding pertinent questions surrounding the topic.

As the discussions came to a close, the successful salon drew to an end, leaving all participants with a sense of substantial gains and an anticipation for Attorney Sun Xian's future insights.