The OTC market in the United States is an important component of the US capital market, with trading securities accounting for approximately three-quarters of the total US securities trading volume. It is the world's largest over-the-counter stock and securities trading market.

The market value of most OTC companies in the United States is between 10 million and 100 million US dollars, with the lowest company having a market value of only over 1 million US dollars. Compared to Nasdaq and the New York Stock Exchange, the listing threshold for enterprises is relatively relaxed, and the short listing time is more flexible, making it an important "springboard" for many small and medium-sized enterprises to enter the New York Stock Exchange and Nasdaq main board markets.

Enterprises can choose to first list on the OTC market in the United States, and then undergo one to two years of cultivation to meet the listing conditions and standards of the main board market before transferring to the main board market.

Through the OTC market in the United States, companies can access leading global investors and numerous professional investment institutions, thereby increasing their own visibility and investor attention, and better promoting their internationalization, laying a corresponding foundation for their transition to the main board market. That's why this "upgrading from OTC to main board" approach has become the mainstream financing choice for many small and medium-sized enterprises to go public in the United States in recent years.

Of course, the OTC market in the United States is not only the mainstream choice for small and medium-sized enterprises, but also the choice of many well-known multinational companies, such as luxury goods group LVMH, well-known sports brand Adidas, British natural gas group BG Group, BNP Paribas, HSBC, Imperial Tobacco, Air France, Dutch Heineken, etc.

We also have many high-quality Chinese companies that have traded on the OTC market in the United States, such as Sinovac Biotech, Yangling Bodison, Dalian Fushi, Shanxi Puda, Far East Energy, Shenzhen Kotong, and BAK Battery, all of which have been listed on the OTC market in the United States and successfully transferred to the main board market.

These data are sufficient to prove that the US OTC market is an important "springboard" for small and medium-sized enterprises to enter the US main board market.

In recent years, the number of Chinese companies successfully transitioning from the OTC sector in the United States to the main board market is on the rise, indicating that more and more Chinese companies have demonstrated a forward-looking understanding of overseas capital markets in terms of globalization, diversified financing channels, and long-term development strategies.

Xu Weihong, Vice President of Yongxing Securities, explained in an interview with Global Times that the capital market has undergone years of development, and most domestic enterprises with good financial conditions and a certain scale have completed their initial public offerings. In addition, the peak period of Internet industry development has passed, and the industry leaders have basically completed the capital market layout. Therefore, currently, the majority of companies choosing to go public overseas are small and medium-sized enterprises.

Xu Weihong further analyzed that A-shares have profit requirements for listed companies' finances, which also limits many small businesses from going public domestically. The NASDAQ market in the United States gives higher valuations to these growth companies, which also makes small and medium-sized enterprises more inclined to go public in the United States.

The overseas listed capital group of small and medium-sized enterprises has very mature experience in OTC listing and conversion to the main board. We look forward to helping more high-quality small and medium-sized enterprises successfully go public in the United States.