The Reason And Strategic Effect Research On The Going Private Of Chinese Overseas Listed Companies

In recent years,More and more Chinese companies have announced a withdrawal from privatization of US capital markets.Moreover,this situation of active privatization delisting has become increasingly fierce.The capital market of domestic is quite a different situation,our listing Corporation even suffered years of losses and face a mandatory delisting,they will not delisting but do anything to keep the listing qualifications as a "shell resources".This opposite phenomenon is confusing,especially when “Muddy Water Company” began issuing negative reports on “Chinese concept stocks” and taken a large number of short position,Chinese enterprises privatisation delisted continue to speed up,seems to be potential try to overtake each other.There are many high-quality companies delisted,it is inevitable to cause people to think,this kind of delisting behavior is for what purpose,for what kind of reason,and the whole process of the privatization delisting process is how to carry out?The research of domestic and foreign about the privatization delisting is still not enough,each of the market participants aroud the privatization are not understand enough about the process and reasons.Therefore,it is necessary for the author to carry out detailed research and analysis on this issue.This is the Focus Media Holdings Limited privatization delisting for example,first introduced the concept stocks privatization delisting wave origin and development process,and then focus on the media development and overseas listing and privatization delisting process are systematically introduced,followed by the analysis of Focus Media privatization delisting reasons and strategic effect,finally is a summary of the case analysis conclusion and some effective suggestions for the relevant main conclusion is proposed,takes stock of large privatization delisting is not seen by foreign short body surface blow and was forced to retreat,more shares in the enterprise is out of stock slump refinancing dysfunction,overseas market supervision to maintain strict listing cost the high and the future strategic considerations and the choice of active delisting.The intention of in-depth analysis of overseas listed companies take the initiative to apply for delisting of the privatization strategy,to dig out the deep reason at the same time,analysis of strategic effects brought by this behavior,to help improve the domestic capital market development and future delisting system.