Research On The Chinese Concept Stocks' New Returning Models

In 1990s Chinese companies began to go abroad to get listed overseas capital market to finance, due to the a-share market can't satisfy the financing demands with rapid growth of domestic companies and domestic policy for certain industries with restrictions for foreign investment, and comparing the domestic with overseas capital market of the listed conditions and market environment, more and more enterprises begin to choose the United States and Hong Kong capital markets in order to solve the problem of finance. For more than 20 years, there were five listing upsurges towards U.S., and in 2010,it was its peak.However the situation was not able to last for a long time. Since 2010, Chinese Concept Stock began to delist and tried to return to A-share market,because of the professional short-sellers attacks,investors'query and regulatory environment.From 2011 to 2015, the amount of Chinese Concept Stock which had delisted or planned to delist was 10 times than before. Surges in A-share market in 2015 attracted more than 30 Chinese companies to return.Compared with 15 years ago, it is crazy returning this time.Baofeng technology Company firstly completed the demolition of the VIE structure to return to A-share market.Focus media has become the first Chinese Concept Stock which finished privatization,demolition VIE structure and listing A-share market, followed by the success of the Giant Interactive Group. The return path of the three companies have great reference value.But after that,every Chinese Concept Stock which want to return to A-share market chose the same way. Maybe it is more easy with this path,but the two or three years of time span will make any enterprise lose its opportunity. On November 13,2015, Wanli Holding announced that Soufun will take equity carve-out to return to A-share market. As the first company to use another new path, without delisting,demolition and at the same time wants to listing A-share market,it attracted attention. During its tough transition period,why do Soufun choose a new path and what will it get and what will it suffer. The first one creating new things deserves attention.Based on the Soufun's equity carve-out, using literature analysis, chart analysis, comparative analysis and other methods to learn present situation,reasons to return and main path of Chinese Concept Stocks'returning. Analyze Soufun case in detail and put forward suggestions. There six parts in this paper.The first chapter is introduction. This chapter mainly introduced the background, significance research methods, the overall framework. Pointed out the innovations and shortcomings of this article, at the same time sorted out the relevant literatures. The second chapter introduced the profile. This chapter mainly introduced Chinese Concept Stocks'returning from two aspects. Firstly illustrate the current situation and Secondly analyze some reasons to return.In the third chapter I analyzed the returning path.Two paths are introduced respectively,including their advantages and disadvantages. The fourth chapter is Soufun case analysis. This chapter introduced the case background,process details,reasons including its own and market factors.And then tried to find out what will it benefit from and what will it suffer. Finally discussed if other Chinese Concept Stocks can use the same path.In the fifth chapter, I put forward suggestions. Chapter six is a conclusion part.I get the following conclusion through the research. Soufun taking equity carve-out with a innovation path different from privatization according to its own characteristics,which seems to get a lot of benefits,making other Chinese Concept Stocks excited,is also risky. After all, profit is always accompanied by risk. Chinese Concept Stock need to make some choices suiting itself according to its feature. Investors don't be blind with so-called innovation model,and get the true purpose and value within this kind of phenomenon of capital market rationally. And regulators should take the responsibility in the capital market, when make contribution to a perfect market, don't ignore the protection of investors.Capital market's development is based on stability. It's an important innovation of Soufun this time. Trying is more valuable.Main contribution in this paper:Firstly, Soufn is the first one who takes equity carve-out to return A-share market.There is no completed case in China and an extreme lack of related research. In this article, through detailed analysis of Soufun it will get much reference value for other Chinese Concept Stocks. Secondly,Chinese Concept Stocks'returning is still in developing period, and the domestic and foreign related research is less, so the research in this paper can slightly supplement the deficiency of the literature. Thirdly, compared to other theory study,this paper studies through Soufun case analysis. At the same time,data and documents used in this paper are relatively new, so it can reflect the specific situation.