A Case Study Of Baofeng Technology Returning To The A Share Market

In the 1990 s,the economy became globalization,thanks for the policies of Chinese economic reform.New economic Internet enterprises,which have not yet met the requirements of domestic listing,have set up a VIE framework for overseas financing,and there have been five waves of listing in the United States.However,this situation reversed in the second half of 2010,and a large number of Chinese stocks registered in the United States capital markets had intened to dismantle the VIE structure and return to domestic stock markets,it not only due to the crisis of confidence in the overseas market.it is also affected by the favorable domestic policies.on the one hand,a share regression improve the enterprise’s progress;on the other hand,it can perfect the structure of China’s capital market.Therefore,the return of stocks should be paid attention.However,the return of Chinese shares is bound to face a series of complicated operations,such as the dismantling of the VIE structure and the domestic listing.as the first successful enterprise in the VIE deconstruction tide,Baofeng Technology has become a "benchmark" for company to return to the A-share market.This case will make a general analysis of the return process of storm technology,in order to provide some references for other China Concepts stock.The content of the paper is divided into five chapters : the first chapter is the prolegomena,which introduces the background of the case,the significance of the research,the research methods and the overall framework.The second chapter includes the literature review and the related theoretical basis,including the research literature before and after the return of the Chinese shares,explains the corresponding concepts,and gives the theoretical basis of the return of the Chinese almost shares.The third chapter is the case of Baofeng technology returning to A shares.Firstly,it introduces the current situation of the industry,then discusses the company profile,actual control and ownership structure,the construction process of VIE model and a return to A shares.Finally,the paper analyzes the process of Breakdown VIE structure and the path choice of A-share listing.The fourth chapter analyzes the motivation of the return and the performances in detail.The main reasons are as follows: get rid of the predicament of undervalued stock price;the domestic market environment and its policies are favorable;the profit model is difficult to be recognized by overseas markets;Reject industry copyright competition,get rid of high cost pressure;implement company strategy adjustment;carry out research and development and introduce talents.Through the research and analysis of the first four chapters,the fifth chapter gives the conclusions and enlightenments.Through the research and analysis,this paper draws conclusions: after returning to A shares,Storm Technology has been recognized by the market and obtained a high stock price;the research and development efforts have been strengthened,the market has increased its risk resist ability,and the strategic adjustment has been implemented,Enhanced the core competitiveness;the company’s development prospects are good,shareholder wealth increased.Finally,some constructive suggestions are given: whether enterprises or market investors should rationally look at the return of Chinese stocks,Considering the applicability of the VIE structure,the Chinese stocks should focus on the risk of deconstruction of VIE in the process of return,and give play to the positive role of investment institutions.Considering the ways of listing and avoiding the risks in the process of return,the government should increase the domestic capital market improvement,better guide the return of high-quality shares.