What Is a Public Company?

The listed company, in accordance with the relevant provisions of Chapter IV, Section ^[1] of the "Company Law of the People's Republic of China," means that the publicly issued shares have been approved by the State Council or a securities authority authorized by the State Council to be listed on a stock exchange Publicly traded company limited by shares. The so-called unlisted company refers to a company limited by shares whose shares are not listed and are not traded on the stock exchange.

The listed company, in accordance with Chapter IV, Section 5 of the "Company Law of the People's Republic of China" ^[1]

1. Stocks have been issued to the public upon approval by the securities regulatory authority of the State Council.

Company listing process

According to the relevant provisions of the Securities Law and the Company Law, the procedure for listing a company limited by shares is as follows:

I. Applying for stock listing to the securities regulatory authority

Company application

Stock listed company

(1) Shares have been issued to the public with the approval of the securities administration department of the State Council;

(2) The total share capital of the company is not less than RMB 30 million;

(3) Publicly issued shares account for more than 25% of the company's total shares; if the total share capital exceeds 400 million yuan, the proportion of public offerings to the public is more than 10%;

(4) The company has no major illegal acts in the last three years, and there is no false record in its financial accounting report;

(5) It has been in business for more than three years and has been profitable for the last three years; if the original state-owned enterprise was established in accordance with the law or was newly established after the implementation of this law, its main promoters are state-owned large and medium-sized enterprises, which can be calculated continuously;

(6) The stock exchange may prescribe listing conditions that are higher than those specified in the preceding paragraph and report to the securities regulatory authority under the State Council for approval.

Bond listed companies

(1) Company bonds have been publicly issued;

(2) The term of corporate bonds is more than one year;

(3) The actual issuance of corporate bonds is not less than RMB 50 million;

(4) The company still meets the statutory corporate bond issuance conditions when it applies for listing of bonds. ^[4]

(1) The listed company is a company limited by shares.

A corporation can be

Most companies are

Differences between listed companies and ordinary companies

The main points are as follows:

1. Listed companies have stricter financial disclosure requirements than unlisted joint stock companies.

2. The shares of listed companies can be listed on the stock exchange for free trading (full or partial circulation, each country's system is different), and non-listed company shares cannot be traded on the stock exchange.

3. Their accountability systems are different between listed and non-listed companies.

4. The conditions for listed companies to be listed are: the total share capital of the company is more than 30 million yuan.

Finally, listed companies can obtain the right to integrate social resources (such as public offering of additional shares). Non-listed companies do not have this right. ^[2]

It was reported on July 23, 2018 that the listed companies in Shanghai and Shenzhen have been renamed. The abbreviation of the names has changed. Last year, more than 200 companies have changed their abbreviations, and many of them are speculators. ^[6]