Liquidity
this post was submitted on 02 Apr 2024
40 points (93.5% liked)
Asklemmy
43397 readers
778 users here now
A loosely moderated place to ask open-ended questions
Search asklemmy ๐
If your post meets the following criteria, it's welcome here!
- Open-ended question
- Not offensive: at this point, we do not have the bandwidth to moderate overtly political discussions. Assume best intent and be excellent to each other.
- Not regarding using or support for Lemmy: context, see the list of support communities and tools for finding communities below
- Not ad nauseam inducing: please make sure it is a question that would be new to most members
- An actual topic of discussion
Looking for support?
Looking for a community?
- Lemmyverse: community search
- sub.rehab: maps old subreddits to fediverse options, marks official as such
- [email protected]: a community for finding communities
~Icon~ ~by~ ~@Double_[email protected]~
founded 5 years ago
MODERATORS
It's not just because they want to raise money, they want to raise dollars specifically.
That said, China has been pushing companies towards domestic capital markets, which run on Yuan.
Mainly because US investors are lazy investors:
- The security is in USD (no change required)
- The security trades at normal US trading hours (not with time delay due to time differential btw the US and the country of origin of the company)
- It is treated as a local security in your tax declaration hence easier to declare to taxes from an individual investor's perspective
Why do companies list on stock exchanges at all? Answer that question and you'll understand how to answer your question.
To raise money from the public.
So I guess the missing piece here is for many people it's much easier to buy and hold shares from an exchange in their own country.
Additionally, they get bought by index funds that buy shares that are listed on particular exchanges.
Exactly, so does it make sense to expose your listing to another country's public if you think you can raise more ๐ฐ?
Liquidity would be my guess.
But Wikipedia has a decent article on Cross Listed companies