Research On Chinese-Concept Shares’Returning Models And Effect Of Equity Carve-Out

Over the past 20 years,due to the slow development of domestic capital market,facing the high financing cost,capital supply is always not sufficient to the need.Meanwhile,Chinese security market has strict listing requirements on enterprises’ scale of operation and profitability.As a result,a large number of companies choose to list overseas to obtain the necessary development funds,which calles Chineseconcept company.Since 2010,however,many institutions,such as Citron Rearserch,started publishing fiercely negative press of Chinese-concept company.At the same time,China’s economic structure has gradually begun to transform from traditional industries to high-tech industries.To attract outstanding Chinese concept company back to domestic capital market,Chinese government has successively introduced many favorable policies as well.These indeed arouse many Chinese companies’ eager of return.According to the statistics of the Wind database,as of February 2019,a total number of 162 Chinese stock companies were delisted from the US capital market.In the current environment,What factors are considered by the Chineseconcept company to take the initiative to leave the overseas capital market? How to choose the path to return? How to achieve privatization? What is the return effect? What are the risks in the returning process? These questions compose this paper.Based on the attention of the market on Chinese-concept company’s returning to domestic market,and the particularity of the return process of Wu Xi Pharma Tech,this paper selects Wu Xi Pharma Tech as the research object and analyzes the innovation of its equity carve-out business.This paper is aims at,on the one side,supplementing the existing literature,and on the other hand,providing reference for the Chinese stocks that wish to return.This paper includes six chapters.The first chapter is an introduction.It mainly introduces the background and significance of the research in the Chinese-concept shares company,expounds the research ideas and methods of the paper,and points out the innovations and deficiencies.The second chapter is the literature review and theoretical basis.This part mainly summarizes the domestic and foreign research results on the return of Chinese-concept shares company outline and the equity carve-out,and then expounds the theoretical basis of this paper.The third chapter is the research on the status and mode of the Chinese-concept shares company’s back.This part mainly expounds the privatization and return status of the Chinese-concept shares company,and analyzes the various aspects of the privatization of the Chineseconcept shares company in detail with theoretical knowledge.The fourth chapter is the case introduction part,which mainly introduces the basic situation of the case selected by Wu Xi Pharma Tech and the specific process of privatization and equity carve-out business return.The fifth chapter is the analysis part which analyzes the motivation,strategy,effect,risk analysis and the promotion value of this case.The sixth chapter is the conclusion.According to the analysis of the full text,the conclusions of this paper are drawn.At the same time,it reveals the enlightenment and reflection on the topic of returning China Concept Stocks.Finally,it reflects the lack of research on the article and looks forward to further research directions.The main contributions of this paper are as follows: First,Wu Xi Pharma Tech’s equity carve-out regression method is different from the traditional regression method.This paper anaylzs its returning process and analyzes its return motivation,strategy,effect,risk and promotion value in detail.I hope that I can provide a reference for other stocks that expect to return.Secondly,there is not much research on the return of privatization of China Concept Stocks in academia.This paper systematically studies the return of privatization of China Concept Stocks and the regression model of equity carve-out,which supplements the research case to some extent.Thirdly,with the analysis of Wu Xi Pharma Tech,this paper leads to the thinking about the return of the China Concept Stocks.This has certain enlightenment for the company,investors and regulators.