Chinese-invested Holding Listed Companies To Return To A-share Market Law Studies

In the1990’s, after10years ablution of reform and opening up, China’s state-owned enterprises and private enterprises had gradually become stronger and larger, and great financing needs come with it. However, Chinese Share-A market had not complete its share-trading reform at that time and, therefore, was unable to meet the great financing needs of large local companies. As a result of it, more and more outstanding enterprise in the market went out of country through various channels; seek for listing overseas capital markets. We call these enterprises the "Oversea-listing Company Owned by Chinese Capital" or more widely-used the "red-chip company". In recent years, the local Share-A market has entered into a period of rapid development, which can be attributed to the complete of share-trading reform, the growth of market players and the development of supporting legal system of Chinese security markets. More and more large state-owned Red-chip companies have been attracted by the incredibly high P/E Ratio and unimaginable market volume of local Share A market. Meanwhile, the international capital market turmoil, especially what happened to the "China concept stock" in U.S. security market in the past few months, had caused a panic in Chinese private red-chip companies. Some of them had removed its red-chip structure and successfully landing on domestic capital market and the others are planning to do so.Since the red-chip company is not Chinese legal person legally and the domestic legal system has no solution for direct listing on Share-A market for foreign company, the return of red-chip Company faces a lot of questions such as, what are the legal characters of red-chip Company? Which returning pattern should red-chip Company follow? How should we conduct legal supervision after the return?The thesis formed by four chapters. They are analyzing the above-mentioned legal relations and legal issues. The first chapter starts from the legal concept of the oversea-listing company owned by Chinese capital, make clear some similar concepts such as share H, red-chip share, the oversea-listing company owned by Chinese capital and the red-chip structure. The first chapter also explains the reason for the red-chip returning. The second chapter focus on three possible return patterns may conducted by the red-chip company and make an analysis of the advantage and disadvantage of the patterns. The third chapter focus on analyze the special problem of removing red-chip structure and make clear its legal risks and solutions. The fourth chapter mainly discusses the supervision of the red-chip company which had successfully returned to the domestic capital market.