The Return Of China Concept Stocks From The Perspective Of Market Timing

Over the years,some well-growth companies have chosen to go overseas for listing because they can't meet the conditions for the A-share listing.These companies are generally called China Concept Stocks.Since the China Concept Stocks have landed in the US market,the development process can be described as ups and downs.From the very beginning,it was not optimistic to the rapid rise,and then faced with difficulties and crisis,so that the wave of delisting and privatization was only 20 years away.Focus Media as a typical China Concept Stocks,the return of its overseas listing and privatization is exactly in line with the development history of China Concept Stocks for many years,and the process of regression has many references and reflections.This paper studies the return of China Concept Stocks from the perspective of market timing.Through the case analysis of Focus Media,it analyzes the considerations of China Concept Stocks in the return timing and the return method,and combines the performance after the return to the market opportunity of Focus Media and evaluates it.Firstly,the literature review is carried out.Based on the review of market timing theory,combined with market timing capital structure theory and market timing-driven M&A theory,the impact of domestic and overseas valuation differences on the listing of China Concept Stocks is proposed.There are three assumptions about the impact of the valuation of the China Concept Stocks on the regression method and the choice of the payment method.The second is to introduce the background of the case,including the concept of China Concept Stocks and the status quo of development and regression.Then the case was introduced,including the summary process of Focus Media Company and the brief process of its return.As the first privatization delisting and return to the A-share stocks,the return of Focus Media has a certain significance.The next is the case analysis section.This part is based on the market timing perspective,combined with the actual case to focus on the timing of the choice of regression media andregression methods,the conclusion that the company chooses to return is based on the pursuit of high valuation,and high valuation allows Focus Media to conduct reverse mergers at a lower cost in the choice of regression methods,further validating the three assumptions regarding the return of the China Concept Stocks.On this basis,combined with the company's stock price and financial performance performance to evaluate the return to the important value of the company's return to A shares.Finally,the conclusion and revelation part of this paper first summarizes the regression process of Focus Media,and expands to the perspective of market timing in the research of the regression of China Concept Stocks,and draws universal conclusions.Then,according to the conclusions obtained,relevant suggestions are made respectively for the returning subjects of the China Concept Stocks and supervisors.