Analysis Of The Motivation And Performance Of The Perfect World Privatization Delisting

Since the reform and opening up,China’s economy has developed at a high speed,and a large number of high-tech enterprises have grown rapidly,and the demand for funds from enterprises has also grown rapidly.However,due to the stricter listing conditions in the domestic capital market,some enterprises that are eager to go public but do not meet the domestic listing conditions have chosen overseas markets with relatively loose listing conditions.The stocks of these companies with Chinese background but listed overseas are collectively referred to as Chinese concept stocks.Among them,the United States,as an important listing place for Chinese stocks,attracted a large number of outstanding Chinese high-tech companies such as Alibaba,Baidu and Jingdong to list on their capital markets.For historical reasons,most of these companies have established red-chip and VIE frameworks in the process of seeking overseas listings to avoid domestic restrictions on foreign investment and other relevant regulations.However,since 2012,a large number of China stocks have started the privatization process,hoping to withdraw from overseas markets and seek opportunities to return to the A-share market.This is a very different attitude towards overseas listings.What is the motivation of the company? Can such an overseas delisting behavior really bring financial functions to the company?In order to solve the above problems,this paper selects the perfect world as a case,and studies its motives and performance.The first part of the article expounds the research background and significance of the article.It also reviews the domestic and foreign literatures related to the motivation and performance of the privatization delisting.The second part introduces the related concepts and theoretical foundations.The third part of this paper introduces the perfect world.The privatization case begins with a brief overview of the basic situation of the perfect world.Secondly,it introduces the implementation process of the privatization delisting of the perfect world.The fourth part of this paper expounds the motives and performance of the perfect world final privatization delisting.The fifth part of the paper draws conclusions and revelations.This paper summarizes the domestic and foreign literatures,based on the theory of value revaluation,signal transmission theory and information asymmetry,analyzes the motives of the privatization of the perfect world,and delists from the privatization to the perfect world company.A series of performance impacts,hope to provide reference for the preparation of privatization of the Chinese stocks,help China’s securities market to deepen the understanding of privatization delisting,and help improve the domestic capital market base delisting system.