The Influence Factor Study On The Motivation Of H-Share Company's Returning Back To A-Share Market

At the beginning of the establishment of the A-share market,the size of deals was relatively small and the liquidity of stocks was relatively poor.At the same time,China carried out approval system as its securities issuing system,which put a strict limitation to listing and financing quota.Therefore,some companies which had difficulty in issuing stocks in the A-share market began to turn their attention to Hong Kong securities market.By the end of 2016,there have been 242 Chinese companies listing H-shares on the Hong Kong Stock Exchange.However,with the rapid development of China's economy,domestic capital market and the reform in the laws and regulations in recent years,more and more H-shares companies return back to A-shares market and become dual listing corporations.So it is of significant importance for long term and healthy development of China's capital market to accurately apprehend the reason why H-shares come back.There have been broad researches on the motivation and influence factors of dual listing,but most of them are at macro and meso level.Based on the existing researches and the data from H-shares companies which has returned back to A-shares market,this paper construct a logit model with 10 variables to make a further empirical research at the micro level of the company.Empirical results show that factors like the property of controlling shareholder,the relative time of H-shares IPO,industry,energy industry,relative valuation level,companies'size,have a significant and positive impact on the motivation of returning back.The proportion of controlling shareholder and the growth of company have a relatively significant and positive impact on the motivation of returning back,while the profitability of company has an opposite impact.In addition,finance industry and leverage level have little impact on the motivation.Based on empirical results,this paper make some suggestions respectively to the securities regulatory authority and H-shares companies.For the former,it should put more support steadily to H-shares companies which are willing to come back,and make more constraint on IPO pricing as well as post IPO regulation,with putting more attention to both future development and financial risk.For the latter,to essentially solve the refinancing problem,H-shares companies should change traditional view that only value fund-raising regardless of investors' payment and improve companies' value as well as resource allocation efficiency.