Research On Internet Red-chip Companies Return To The "New Three Board"

In China,the Internet companies were faced with many restrictions earlier capital markets.To figure out the financing difficulties,some of the Internet companies are seeking overseas listing and financing,such as Sina,Net Ease Inc,Tencent.In this process,listing overseas companies need to build red-chip architecture.But in recent years,capital market has undergone tremendous changes regardless of domestic and international,so that overseas listing becomes more and more difficult.In August 2006,six ministries jointly issued the "No.10",increasing the time to set up a “special purpose company” with the approval of the Ministry of Commerce and foreign exchange management department.This will undoubtedly increase the difficulty and risks of listing overseas;There is a negative impact on foreign capital markets with world economic recession,the international capital markets downturn and the crisis of confidence in stocks.On December 13,2013,the State Council issued the "State Council on the National SME share transfer system issues," marking the "new three-board," expanding officially to the whole country.The expansion of "Three new board" is of great meaning,building multi-level capital markets,sustaining economic growth.And high earnings release gave the return to the domestic Internet companies listed on the creation of a favorable external environment.Many Internet companies selected the remove red-chip structure,returning to the domestic market."Tianya BBS" was the first red-chip Internet companies returning to the domestic listing on "three new board".Basing on "Tianya BBS" case,this paper introduces its business development,business models and future strategic planning,setting forth in the overseas listing build a red-chip structure early and post-removal process of red-chip architecture.To top it off,I analyse the company from building a red-chip structure to the process of dismantling red-chip structure and principles to follow,including: registration of foreign exchange,foreign equity is reversed and the disposal of the special purpose company,foreign investment institutions exit,tax incentives and other issues.At the same time,combining with the "new three board" listing requirements and access conditions,I explore the power of company's domestic return demand listed on "new three board",fitting analysis of the "new three board" with the company's needs.On theory and practice,I provide for the red-chip companies listing on the "new three board" and the guide for brokers to,as well as advising the government in the regulation of red-chip architecture.