Research On The Motivation And Path Of The Return Of WuXi Pharmatech's Privatization

Since the 1990s,Many years ago,Chinese companies began to seek listing in overseas capital markets.However,since 2010,the deliberate suppression of foreign short-selling institutions and changes in foreign regulatory environment have led Chinese companies to withdraw from the US capital market and seek to return to the domestic capital market.At the same time,the domestic economic environment continues to improve,and the intention to withdraw from the market is becoming more and more obvious.As a few delisting stocks,most of the stocks were privatized and delisted.After the VIE structure was demolished,IPOs or backdoor listings were used to return to the A-share market.After the return of the stocks,most of the stocks were referenced to the previous success stories.,return in these ways.Different listing routes have their own advantages and disadvantages.Chinese listed companies generally choose different listing methods according to the listing speed,their own shareholding structure and strategic development requirements.However,with the increase in the number of Chinese stocks returning,different regression patterns have emerged.This paper selects the case of-WuXi Pharma Tech's spin-off and return to the study.First,it introduces the process of Pharmacological Refugee's privatization,including the privatization delisting process.The spin-off subsidiaries are listed on the New Third Board,Hong Kong stocks,and the main IPO.The process of return Secondly,it analyzes the motivation of the return of WuXi PharmaTech's privatization,firstly gives an overall overview of the motivation of the privatization of the Chinese stocks,and then analyzes the motivation of the return of WuXi PharmaTech's privatization,including the lower valuation of enterprises in the same industry.The need for strategic transformation,the domestic regulatory environment and the ongoing industry.Then,after summarizing the path of the Chinese stocks returning to the usual choice,the author analyzes the reasons for the special route of WuXi PharmaTech's choice of spin-off,and finds that the spin-off listing has the risk of reducing the undervalued enterprise value and eliminating the parent company.The positive effects of"negative synergies"and broadening financing channels.Finally.according to the research conclusions,the corresponding suggestions are put forward:as a Chinese stock company,it should first be clear whether the return to the domestic capital market has a positive effect on its own development;in returning,it should fully consider its own conditions,and draw on the way of WuXi PharmaTech's spin-off listing.On the basis of this,choose the regression method that suits you.As an investor,we must prudently invest on the basis of a comprehensive understanding of the Chinese stock companies.As a regulatory body,we must constantly improve the relevant rules and regulations of the China Stock Exchange and encourage some high-quality Chinese stock companies to return.