The Reasons And Effects Of Privatization Regression Of Zhongguo Stock

In the early stage of the development of domestic capital market,the market access conditions are high.It is difficult for light assets enterprises such as the Internet to meet the listing conditions.For the development of enterprises,they have chosen to go to the United States for listing.These enterprises are known as medium-sized stock companies.However,Chinese stock companies in the United States frequently suffer from institutional short-selling,undervalued corporate value,financing difficulties again,and the development of enterprises is limited.In recent years,the domestic capital market has become more and more perfect.Supported by the national policy,a large number of Chinese capital stocks choose to privatize and return to the domestic capital market,which has set off a wave of privatization and delisting.However,in 2016,the state strengthened the supervision of backdoor listing,which also affected the Chinese stock market,making many Chinese stock market stop or even give up privatization.Qihu 360,as the first Chinese stock company to return to China after the promulgation of the "most stringent new rules for backdoor backdoor",its experience is worth learning and learning from the enterprises eager to return.This article chooses Qihu 360 as a case because it can still return quickly under the strict new rules.It is the first company that chooses to return back after the new rules are promulgated.Moreover,the transaction volume of this backdoor return is huge and the company has a certain representativeness.Taking this as an example,the author makes a thorough study on the reasons for the delisting,the reasons for successful return and the regression effect of the privatization of Zhongguo Stock.Firstly,this paper summarizes the domestic and foreign literatures on the privatization delisting and backdoor listing of China's stock market.Based on the research conclusions of the predecessors,this paper makes an in-depth study on the privatization return of China's stock market,actively learns the research results of the predecessors,and improves the temporary shortcomings of the literature.Secondly,the author advances the theory of value evaluation,transaction cost and equity financing.This study lays a theoretical foundation for the writing of this article.It defines the concepts of privatization and backdoor listing of Zhongguo stock,and briefly describes the current situation of the return of privatization of Zhongguo stock.That is,for various reasons,Zhongguo stock companies are eager to return to the domestic market,but the intensification of domestic supervision makes it difficult for them to stand by and return.The author chooses the privatization return of Qihu 360 as a case study by using case study method,and briefly introduces the basic situation of both sides of the transaction,the path choice of Qihu 360 in the process of privatization delisting and return,and combs the process of privatization returning to the market.In addition,the author makes a summary of the reasons why Qihu 360 desires privatization delisting and can successfully return to the original A-share market.Through analysis,it is concluded that the main reasons for Qihu 360's consideration of privatization delisting are the high cost of maintaining listing in the United States,the restriction of business development,frequent short-selling and the low market value of enterprises.It is worth pointing out that Qihu 360's successful return to A-share market can not be achieved without the support of the government,consortia and small and medium shareholders.Of course,it also needs to do a good job.Market preparation,choosing the right target for listing at the right time,we still need to do a good job of confidentiality.Then the author uses the event study method and financial index method to study the regression effect of Qihu 360.The data show that the privatization return of Qihu 360 has brought positive effects in a short time.Finally,the author draws some inspirations for the prospective stock companies,and The case study is extended to the whole Zhongguo stock enterprises,and the reasons and effects of the regression of privatization of Zhongguo stock enterprises are summarized.Throughout several successful privatization returned companies,such as Focus Media,Giant Network,etc.,the impact of their return is positive,which has played a guiding role for other companies.However,the author believes that in the process of returning to privatization,Chinese stock companies should formulate strategies according to their own conditions,not blindly copy others' practices,correct the motive of returning to the domestic market,choose the appropriate return path,guard against the risks in each link,pay close attention to the changes of domestic policies,and strive for success at the right time.Through a series of analysis and research,I hope to be able to contribute my meager strength to the research of China Capital Stock Exchange.