The Case Study Of Focus Media 's Returning Back To A-share Market

Over the years,since the limitations in A-Shares for newly listed companies,the decision-makers of some companies with great potential profit chose the opportunity of oversea financing.These listed companies,from example listed in American,but invested by Chinese cooperations,are called China Concept Stocks by investors.Since Sina invaded the American stocking marketing in 2000,China Concept Stocks suffered a fluctuant experience,which is from rapid promotion to public focus,sequently to crisis of confidence because of numerous scandals,and finally to delist and valley of privatising.Fortunately they embraced a recovery period,as a marking millstone that JINGDONG and ALIBABA made their IPO in the U.S.A.However,since the second half year of 2014,the marketing statistical expressions of China Concept Stocks were considerably falling behind those of native stocks in China and the U.S.A.Comparing with A-Share companies in the same industry,a increasing number of China Concept Stocks were considering of return to A-Share family,looking forward to acquiring higher evaluation,broader celebrity,more flexible capital-mobility and financing functionality.First and foremost,this paper demonstrates the general situation about the returning of China Concept Stocks.From the analytical statistics,the facts leading to the returning are,respectively,underestimated value,strategic adjustment,large shareholder's cash-out,refinancing difficulties and avoiding supervision.Subsequently this paper discusses the returning process and path of China Concept Stocks.The specific returning process can be divided into three steps — privatising delisting,abandoning VIE structure,and A-Share listing.The returning paths are listed as direct IPO listing,A-Share backdoor listing,the new-three-board listing and asset acquisition listing.Secondly,this paper analyses the case of Fenzhong Media's returning to A-Share,and discusses this case in the three aspects of returning motivation,returning advantage,returning risk and returning result.The main reasons of the returning are underestimated value,strategic adjustment,short crisis,and getting rid of supervision.The advantage of returning is that privatised returning funds are abundant,investor relations are flexible,the returning task is well prepared and the timing of returning is appropriate.At the same time,the returning is likely to face the backdoor-listing risk,legal-litigation risk and domestic policy changing risk.As for the result,Focus Media enhanced it's valuation,optimized the ownership structure and brought investors excess by returning back to A-share Market.Finally,this paper summarises and refines some enlightenments and suggestions form the returning events of China Concept Stock.In respect of company decisions,it is recommended that the companies should correctly view the returning of privatisation,according to their own situation to make a rational returning choice.Besides,the companies should strengthen the management of risk.By selecting the right strategic partners and the appropriate way of listing,the companies can reduce the risk of time and money cost.By strictly complying with the laws and fix a fair privatization price,the companies can reduce the risk of legal.By focusing on policy changes,the companies can reduce the rsk of policy.In the respect of marketing supervision,it is necessary to promote the reformation of the stock market supply system and improve the domestic capital market system.In the respect of investors,we should concern more about investing in the returning of the shares,estimate the hidden intentions of the returning,raise awareness of risk,and maintain rationality in investment.