Research On The Influencing Factors Of The Delisting Of The Privatization Of The Chinese Stocks

Since 2015,the domestic strategic emerging board,registration system and other favorable policies will soon be implemented,the Chinese concept stocks set off an unprecedented wave of privatization.In the past more than one year,there are nearly 40 overseas-listed companies announced the privatization of delisting.However,in 2016,the registration system and strategic emerging board was fall into abeyance,backdoor listing censorship becomes strict,part of the companies stick to complete the privatization,and some companies give up privatization,the more is in a wait state.At present,the research about privatization mainly focuses on the motivations of privatization,it mainly includes the pursuit of tax benefits,against hostile takeover,the transfer of corporate wealth,the improvement of the control structure and the adjustment of corporate strategy,etc.And the privatization of Chinese concept stocks in the past few years began to appear in large numbers,domestic scholars only combine some cases to analyze the motives and risks of privatization,and have not formed systematic research.Under this background,through the comparative analysis of the success of Qihoo 360's privatization and the failure of Nasdaq YY's privatization,then combined with other cases of privatization to explore the factors that affect the success or failure of privatization,to further improve the relevant research of privatization,provide certain reference significance for overseas-listed Chinese companies.This article mainly uses the case study method and the comparative research method to analyze the background of Qihu 360's privatization and the reason of it's success,and analyzes the background of Nasdaq YY's privatization,the cause of it's failure.Then this paper explores the factors influencing the success or failure of the privatization of Chinese stock companies in terms of the privatization's price and management's shareholding ratio,the financing ability of the privatized buyer group and the national capital market policy.Through the research,we arrive at the following conclusions: Firstly,the reasonable price of privatization and higher management ownership is conducive to promote the implementation of Chinese concept stocks' privatization,but it is not a necessary condition for the success of privatization.Secondly,the financing ability of the privatization offer is the key factor affecting the success or failure of privatization,if there is not enough financial support,privatization will not be completed,the strong financing ability of the offerers is a necessary condition for successful privatization.Thirdly,the change of the national capital market policy has an important influence on the privatization of the concept stocks,and the impact is different for the purpose of privatization.The companies which privatized for strategic adjustment is less affected by policy changes.However,the companies which privatized in order to seek arbitrage may greatly influenced by policy changes.Thus,this paper puts forward some suggestions to Chinese concept stocks,investors and regulators.Overseas-listed companies should make privatization decisions based on their own development condition,and formulate reasonable plan to ensure the privatization goes smoothly;investors should select investment targets carefully,and fully understand the investment risk;regulatory agencies should speed up the implementation of the registration system,improve the delisting system,guide overseas-listed companies to return in order,and promote the healthy development of capital markets.