Relative Valuation Level?degree Of Equity Concentration And The Behavior Of Chinese Overseas Listed Companies Returning To A-share Market

Comparing with mature capital markets in developed countries in Europe and the United States,China's capital market started late,and there were some phenomena such as imperfect related systems and imperfect regulatory system,which directly led to the difficulty of achieving the desired financing effect of listed companies;in addition,the domestic stock issuance approval system would be strict and the final result of IPO would be highly uncertain.Therefore,in order to further broaden the financing platform and channels to meet their own financing needs,some Chinese local enterprises have decided to go abroad for listing.However,since 2010,more and more Chinese stock companies listed in the United States have chosen to return to A-share market after privatization and delisting.The government has also issued policies to encourage the return of Chinese stock companies.It has become a trend for Chinese stock companies to return to A-share market.However,the data show that the huge valuation differences between China and the United States make it possible for China's proposed shares to return to A-share market to have cross-market arbitrage space and privatization,delisting and re-listing of China's proposed shares.This resource integration process also provides controlling shareholders with the opportunity to obtain private benefits of control rights.Therefore,the paper studies whether there are adverse motives for China's proposed shares to return to A-share market to develop and improve capital.The market has important theoretical and practical significance.Based on the relevant theoretical research on the motivation of returning to A-share market after the delisting of China's stock market and the historical data and current situation of returning to A-share market of China's stock market,this paper further studies the difference of relative valuation level between China's and America's stock market of China's stock market and the equity represented by the proportion of controlling shareholders of China's stock market of China's stock market.The effect of concentration on the probability of return to A-share market of medium-sized stock companies is also tested on the interaction between relative valuation level and ownership concentration.This paper chooses 151 Chinese companies listed in American stock market as samples and tests them with Logitregression analysis.The results show that there are unhealthy motives for controlling shareholders to pursue private benefits of control rights and cross-market arbitrage space when Chinese companies return to domestic A-share market.With the increase of relative valuation level of Chinese companies,controlling shareholders pursue invisible benefits of control rights.The promotion effect of the machine on the return of stock approximation to A-share market is strengthened.According to the conclusion,this paper puts forward four policy suggestions to the supervisors: perfecting the existing IPO approval system,advancing the landing of the registration system reform,properly reducing the difficulty of listing companies to improve the status quo of excessive earnings ratio in A-share market;perfecting the supervisory mechanism and information disclosure system,strengthening the issuance supervision of prospective companies returning to A-share listing;perfecting the reduction system of A-share market,and extending it appropriately.It has returned to the lock-in period of restricted shares of China Stock Estimate Company.