What are dual listings and secondary listings?

Views 36KAug 9, 2023

Core points

● dual listing means that the shares of a company are mainly listed on two or more different exchanges.

The secondary listing of ● means that a company trades its shares on a stock exchange other than the place where the first listing is made.

The dual listing of ● can make the company's shares be contacted by more market investors, obtain more raised capital, and improve the stock liquidity of the company.

Concept understanding

Dual listing means that the shares of a company are listed on two or more different exchanges, each listing place is the first listing place, there is no primary or secondary distinction.

Secondary listing means that a company trades its shares on a stock exchange other than the primary listing place in order to take care of the trading needs of investors in other markets.

How to carry out dual listing of Enterprises

In general, companies that want to dual listing will basically choose the securities market of the country to which the company belongs as the earliest place of listing, and then choose other stock exchanges to list according to their business model or business location.

Because the capital market of the United States is the largest market in the world, many American companies choose to be listed on a single exchange in the United States.

For many non-American companies, dual listing on American exchanges and domestic exchanges or other exchanges is also an important listing consideration.

Strictly speaking, dual listing in every listing place is subject to strict listing review and supervision, and can be listed only after meeting the local listing conditions, which has the disadvantages of long time, high cost, strict supervision and so on. Moreover, the dual-listed shares in different markets can not be directly circulated across the market, and the stock price is affected by different trading time, exchange rate fluctuations and other factors.

However, dual listing also allows the company's shares to be contacted by more market investors, obtains more raised capital, improves the liquidity of the company's shares, and helps to consolidate the company's image position in the global market.

How to carry out the secondary listing of enterprises

The process of secondary listing is much simpler than that of dual listing, and it is subject to fewer listing review and regulatory procedures, and can enjoy more preferential exemption clauses.

In general, companies only need to follow the supervision of their main listed exchanges, and do not need to pay high full listing fees on the exchange where the secondary listing is located.

In terms of stock pricing, the pricing of the secondary listing is basically the same as that of the original market, and the stocks in different places of listing can be exchanged with each other. Except for the basic exchange and other factors, there will be no obvious price difference between different markets. Therefore, in the secondary listing and subscription, if the stock price in the original market fluctuates obviously, it will have a significant impact on the stock price in the secondary market.

In addition, we also need to distinguish the difference between secondary listing and depositary receipt Depositary Receipts. Strictly speaking, a depositary receipt is just a contract that gives its holder the right to acquire specific shares on demand. Depositary receipts based on stocks or other securities may be listed on many exchanges.


There is no absolute difference between dual listing and secondary listing, and how to choose the form of listing depends entirely on the regulatory policy of the company's demand and location of listing.

Disclaimer: The above content does not constitute any act of financial product marketing, investment offer, or financial advice. Before making any investment decision, investors should consider the risk factors related to investment products based on their own circumstances and consult professional investment advisors where necessary.