Study On Chinese Stocks Listed In The U.S. Returning To Chinese Captial Market

With the deepening of reform and opening-up policy,the communication between China and other countries is gradually deepening,and more and more Chinese enterprises go overseas to the capital market.Ever since the nineties from last century,Chinese enterprises appear in the capital market in US.However,since 2010,Chinese concept stocks which listed in the US initiate a trend,which is privatization and returning to Chinese capital market.But due to the reasons from multiple aspects.Chinese concept stocks may encounter all kinds of risks and related problems when returning to Chinese capital market.This article analyzed the background and risks when enterprises returned to Chinese capital market,and then analyzed the choices in returning path,board of relisting,mode of relisting’ that lie in the process of returning.Based on these analysis,taking Focus Media as an example,which is a success in returning to Chinese market,I figured out Focus Media chose tradition path to Chinese market via reverse merger in Small and medium-size Enterprise Stock Market in order to adjust enterprise strategy structure.The reason behind this choice was that enterprise value of was underestimated,and increase in the listed maintenance cost as well as pressure of share out bonus.Furthermore,the reason for its success was due to good performance,the advancement of private equity investment,proper solution to lawsuits,and the choice for reverse triangular.The conclusions draws from this article are(1)because of the significant differences in regulatory system,policy environment,the acknowledgement of Chinese concept stocks between US and Chinese market,Chinese concept stocks may have risks in going private,dismantle VIE and relisting while returning to Chinese market.(2)Chinese concept stocks face the choice in returning path,board of relisting,mode of relisting.(3)Focus Media combine the developing strategies and special conditions of itself,and chose the traditional path by reverse merger in Small and medium-size Enterprise Stock Market.At the same time,this enterprise properly solved questions in each period and finally come to a success.This article studied related problems when Chinese concept stocks returning to Chinese market by using the normative analysis combined with cases.I suggested Chinese concept stocks should take proper attitude towards going private and returning to Chinese market.Meanwhile,Chinese concept stocks should play an positive role as investment institutions,in order to help Chinese concept stocks return to Chinese market.