Difficulties Faced by Chinese Companies in Overseas Listings Regarding Information Disclosure

By introducing the importance of the information disclosure system, this paper introduces the impact of the regulatory issues of the information disclosure system on the stock market, financial market, and national economy. This paper studies financial statements prepared in accordance with the accounting and disclosure regulations of the United States and Hong Kong and analyzes the financial reports of 2 listed companies. It then studies the financial information disclosed by companies issuing A-shares and H-shares, including vertical and horizontal comparisons of the two companies’ key financial indicators widely used in investment analysis. Most Chinese listed companies do not use full disclosure principles in their financial reports, and the reliability of financial disclosures to Chinese market participants may be questioned. Listed companies that win the market’s trust need standardization of accounting information disclosure, effective operation of the securities market, and efficient allocation of resources. In addition to the need for Chinese companies to comply with territorial disclosure standards, there is an urgent need for Chinese companies to significantly improve their accounting and disclosure practices.