Case Study Of Bona Film's Privatization Reverting To Domestic Capital Market

In the late 1990 s,China became a member of the WTO and further opened the door to opening to the outside world.At the beginning of the 21 st century,China ushered in the wave of Chinese Concepts Stock investing in the US capital market.In 2010,there were as many as 40 Chinese companies represented by SOHU,DangDang,and YOUKU investing in the US capital market,and this year also became the largest number about it.In recent years,the privatizations of domestic companies listed in the US capital market happened frequently.Therefore,it is useful to study the reasons behinding the privatizations of Chinese Concepts Stock and the ways returning to the domestic capital market.First,it can help those domestic unlisted companies to correctly choose a channel of the IPO.Secondly,it can offer suggestions on how to adapt to overseas capital markets,deal with the relationship with overseas investors,prevent the risk of being shorted,and choose a channel on return to the domestic capital market.Last,it will help improve China's securities market supervision policy.In this paper,I choose the overseas listed company ——Bona Film Group Co.,Ltd.(hereinafter referred to as "BONA")as the study object.The main research content is the privatization and return of the BONA.This paper descripts the detail privatization and return process of the BONA,The paper will combine the background of the privatization and return of Chinese Concepts Stock,and make a detailed analysis on reasons of the privatization of BONA through the comparative analysis,the qualitative analysis method,the quantitative analysis method and other research methods.After that,we explor the channels for Bona Film's return to A-shares market through comparative analysis,mainly comparing the three currently popular methods of “backdoor listing”,“IPO overall listing” and “split listing”.Last,the study finds that the stock price is underestimated is the main reason for the privatization of BONA from the United States and return to A-shares market,while the strategy,cost,and shorting are the secondary reasons.In addition,although the backdoor listing is the main methods of returning to A-shares market that most companies choose,this article believes that it is not suitable for BONA,and IPO overall listing is the most suitable path for BONA.