A-Share Listing Overview - A-share market has stricter supervision and audits compared to Hong Kong and US stocks due to a higher proportion of retail investors with limited screening capabilities [1] - A-share listings have "invisible thresholds" that are much higher than the explicit requirements specified by exchanges [1] - A-share market offers a liquidity premium of 20% to 30% compared to Hong Kong stocks due to higher trading volume, leading to higher valuations [1] - A-share listing process involves three stages: application, review (by the exchange and the China Securities Regulatory Commission), and issuance [2] Listing Requirements and Preferences - Science and Technology Innovation Board requires a three-year revenue compound growth rate of over 25% or recent revenue exceeding 300 million yuan, along with R&D expense requirements [1] - A-share market favors companies needing funds for production (e g, professional equipment manufacturing, pharmaceutical manufacturing) or R&D (e g, software, information technology) [3] - Companies seeking A-share listing, especially on the Science and Technology Innovation Board, must align with national strategies, such as promoting science and technology innovation and hard technology [3] Insta360 (IArashi Vision Inc.) Case Study - Insta360's prospectus highlighted its alignment with the national strategy by showcasing its panoramic technology, anti-shake technology, and AI image processing technology [3] - Insta360 planned to use the raised funds (originally expecting 460 million yuan, ultimately raising 19 billion yuan) for building a production base (190 million yuan) and an R&D center (270 million yuan) [3] - Insta360's IPO issue price was 47 yuan, and the stock price rose by 285% at the opening [7][8] Regulatory Environment - China's capital market is shifting from increasing scale to improving quality, emphasizing profitability, dividend payouts, and stricter supervision following the new "Nine National Regulations" [13][14][15] - The registration system for A-shares, while aiming for transparency, still involves substantive review and is stricter compared to US and Hong Kong stocks [5] - Intermediary institutions (investment banks, law firms, accounting firms) play a crucial role in the listing process and bear significant responsibility for the accuracy and completeness of the disclosed information [2][4]