Research On The Motivation And Effect Of Mindray’ Return To The A-share Market

American capital market has the advantages of low listing threshold,short cycle,high valuation and so on,which attracts many domestic companies with financing demand to issue shares in the United States.However,in recent years,under the influence of factors such as the increase of listing cost,the increase of risk and the improvement of domestic capital market,a large number of China-related shares choose to withdraw from American capital market by privatization and return to A-share market,which is called "the return of China-related shares to A-share".In the China-related shares which are return to A-share market successfully,there are some well-known enterprises such as Qihoo 360 and Home Inn.Different from some Chinarelated shares,Mindray’s return is successful and the operating condition and overall performance of Mindray keeps improving.Therefore,this paper analyzes the motivation and effect of the Mindray’s return,in order to provide reference for China-related shares.Based on the Transaction Costs Theory,Investor Recognition Hypothesis,Revaluation Theory and Asymmetric Information Theory,this paper firstly analyzes the return motivation of Mindray from the aspects of capital market environment,system differences at home and abroad,and industry comparison.Then,this paper explains the market value change of the company,and uses the financial indicators and non-financial indicators to study the overall effect of the company’s return to A-share market.After that,this paper draws the conclusion and analyzes the financial data before and after the A-share market listing,mining the hidden problems in the process of the company’s return to A-share market.Finally,the paper summarizes enlightenments to enlighten other China-related shares to successfully return to Ashare market.The research finds that:(1)The motivations of Mindray’s return to A-share market include the low valuation of enterprises in the United States,the reduction of transaction costs,the avoidance of short institutional "sniping",the need for strategic adjustment of the company and the support of domestic policies.(2)The return of Mindray has brought positive effects.The market value,financial and non-financial situation of Mindray has improved after its return to A-share market,and it has strong competitiveness in the same industry.Therefore,this paper draws the following inspirations:(1)China-related shares should treat privatization rationally;(2)Relevant departments should guide the return of high-quality overseas listed enterprises;(3)The government broadens the return path of China-related shares and promotes the diversification of listed sectors.