China ADR stock research

(Oct. 20, 2009 - Barath K.) Executive Summary: This report gives an overview of major stock markets in the U.S and lists the Chinese companies traded in the different exchanges in the U.S market.

About NYSE Euronext: NYSE Euronext, the holding company created by the combination of NYSE Group, Inc. and Euronext N.V., was launched on April 4, 2007. NYSE Euronext (NYX) is the world’s most diverse exchange group, offering a broad and growing array of financial products and services in Europe and the United States that include cash equities, futures, options, exchange-traded products, bonds, market data, and commercial technology solutions.  With over 8,000 listed issues globally, NYSE Euronext's equities markets -- the New York Stock Exchange, Euronext, NYSE Arca, and NYSE Amex -- represent nearly 40% of the world's cash equities trading volume, the most liquidity of any global exchange group.

In the following sections, the paper reports the listing requirements in NYSE, NYSE AMEX and NASDAQ and the list of Chinese companies in these three exchanges. The issue type of these listed companies can be common stock (if incorporated in the U.S) or ADS.  An (American Depository Share) ADS is a security issued by a U.S. depositary representing ownership interest in the deposited security of a foreign company. One ADS may represent a fixed number, or fraction, of deposited securities.

1. NYSE:

The New York Stock Exchange (NYSE) is the premier listing venue for the world’s leading large- and medium-sized companies. They meet and adhere to the overall highest listing standards. The NYSE is the largest and most liquid cash equities exchange in the world.

1.1. Listing requirement: The New York Stock Exchange’s listing standards are among the highest of any market in the world.  Meeting these requirements signifies that a company has achieved leadership in its industry in terms of business and investor interest and acceptance.

The Exchange offers two sets of standards – worldwide and domestic – under which non-U.S. companies may qualify for listing. Both standards include distribution and financial criteria. A company must qualify for both the distribution and financial criteria within that particular standard.

1.2. Chinese companies listed in NYSE:

2. NYSE AMEX:

NYSE Amex, formed by NYSE Euronext’s acquisition of the former American Stock Exchange in 2007, is the premiere U.S. equities market for listing and trading small and mid-cap growth companies. The NYSE Amex platform offers its listed companies price discovery, liquidity and reduced trading volatility beyond the capabilities of markets that are solely electronic.

2.1. Listing Requirements:

2.2. Listed companies:

3. NASDAQ:

The NASDAQ Stock Market, the largest US electronic stock market with approximately 3,200 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. It is home to companies that are leaders across all areas of business

3.1. Listing requirements: Companies must meet all of the criteria under at least one of the three financial standards and the applicable liquidity requirements below.

FINANCIAL AND QUALITATIVE REQUIREMENTS

NASDAQ Global Select Market Initial Listing Requirements

3.2.  Listed companies: Many sources report the below listed companies as Chinese companies listed in NASDAQ. It is interesting to note that none of these companies are officially listed as Chinese companies in the NASDAQ website because none of these companies are incorporated in China. These companies either have their operations in China or have wholly owned subsidiaries in China but the parent company, in most cases, is incorporated in the Cayman Islands, British Virgin Islands or the U.S.

* All information was sourced from official sites of NYSE EURONEXT and NASDAQ.

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