A Study On Motivation And Risk Of Privatization Of Bona Film Industry Returning To A Share

For a long time,China's A-share capital market has many strict restrictions on newly listed companies.Many companies have chosen to go public in the US in order to be listed as soon as possible.These enterprises are called China Conceptual Stock Enterprises.Especially since 1990,this trend has become hotter and hotter.However,the development of these companies in overseas capital markets is not always smooth.After the outbreak of the US financial crisis,many short-selling institutions maliciously shorted China Conceptual Stock Enterprises,causing them to suffer a serious crisis of trust.In addition,the market value of the company's stock companies has been underestimated for a long time,financing is difficult,and it also has to bear a very high maintenance cost of listing status.At the same time,the domestic capital market has developed rapidly,and A-share listed companies have obtained extremely high valuations,and the financing channels are very smooth.Therefore,China Conceptual Stock Enterprises have chosen to delist from the US privatization and want to return to the domestic capital market,and Bona Film is one of them.Up to now,Bona Film has only completed its privatization and has not successfully returned to the domestic A-share market.First of all,this paper introduces the specific process of privatization of China Conceptual Stock Enterprises,the different path choices of returning A shares and the related theoretical basis.Secondly,it systematically analyzes the case of Bona Film privatization returning to A shares.Bona's return process is divided into two phases: “privatization delisting – returning to A shares”.This paper focuses on the motivations and risks of Bona Film in these two phases.Finally,draw the relevant conclusions of the article and suggestions for the enlightenment of Bona and other China Conceptual Stock Enterprises and Chinese investors.For Bona Film,it is necessary to improve its sustainable profitability,reduce the risk of debt repayment,formulate a correct business strategy,carry out the whole industry chain layout,and should also operate in compliance and actively fulfill the corporate social responsibility.For other China Conceptual Stock Enterprises,it is necessary to rationally return,develop appropriate privatization programs,and fully understand the various risks that may exist.For Chinese investors,it is necessary to have a deeper understanding of the Chinese stock companies and make the most rational investment decisions based on the company and its own situation.