Listed Companies To Go "red-chip Architecture"

2010 is bound to be an extraordinary year for the Chinese capital market. The number of 349 IPOs of 2010 exceeds the sum of number in the former three years and the size of its fund-raising is up to 492.131 billion yuan. In the background of that large number of enterprises IPO plan abolished due to the financial crisis around 2009, government authorities , which is led by China Securities Regulatory Commission speed up the approval rhythm on purpose, which directly results in a massive increase in IPO. There is no sign of abating the heat till I begin to write this paper in the first quarter of 2011.When faced with domestic enterprises rushing into the capital market and creating many"rich-quick miracles"which are brought by the high P/E Ratio, many pre red-chip companies begins to turn their eyes on the domestic capital market. With many red-chip companies such as"Net 263 Ltd.","Jiangyin Zhongnan Heavy Industries Co., Ltd.","Harbin Gloria Pharmaceuticals Co., Ltd."successfully landing on domestic capital market ,red-chip return has become a hot topic. In the perspective of the"red-chip structure", the author attempts to summarize the effective path and methods of the return of the red-chip company through analyzing the classical cases of the companies referred above. In the analysis process, the author focus on issues and difficulties in respect of the return of the red-chip company and put forward some practical methods to smooth the way of the red-chip return.