A Case Study Of "Perfect World" Privatization Returns

With the rapid development of my country's economy,the needs of enterprises for listing financing are increasing.However,due to the high threshold for listing A shares in my country,the cumbersome review process and the complicated financing procedures,some companies that are eager to seek financing choose to list on overseas capital markets.These companies are called China Prospective Shares.In recent years,Chinese stock companies have encountered many obstacles in the development of overseas markets,while the domestic capital market has gradually warmed up,making a large number of Chinese stock companies on the journey back home.Perfect World,as a member of the Chinese stock market that chose to return,its stock price on the Nasdaq market before the return was sluggish,but after the return,it became China's largest video game complex.The motivation and the performance changes before and after the return are worth in-depth analysis.This paper adopts case analysis method,based on the existing literature at home and abroad,combined with the relevant theories of Chinese stock market regression,selects the perfect world privatization regression case as the research object,and introduces its privatization regression process.It also analyzes the reasons for its privatization and delisting,and the reasons for its A-share listing.Use the event research method to study the short-term market performance after its regression,use the financial index method and economic value-added method to analyze the long-term financial performance changes before and after the regression,and analyze the key factors for the successful return of the perfect world.The results of the study show that Perfect World's privatization delisting is due to changes in financing channels,low recognition in overseas markets,reducing regulatory pressure and avoiding the risk of malicious short selling.The main reasons why Perfect World chose to return to the A-share market are the adjustment of the video game linkage strategy,the guidance of relevant domestic policies and the change in demand in the domestic game market.The perfect world after the return of privatization not only has outstanding short-term market performance,but also long-term financial performance,which shows that the path to mergers and acquisitions is the right choice.The successful return of Perfect World benefits from adequate preparation and selection of a suitable return path.At the end of the article,combined with the results of the case study,it provides some enlightenment to otherChinese stock companies that intend to return,including: rational decision on whether to return,careful choice of return path and reasonable planning for later development.