Research On The Return Mode And Value Revaluation Of China Concept Stocks

In the past two decades,Chinese companies have gone public overseas and have written a chapter on capital internationalization.The identity of the Chinese concept stocks is an successful indicator of these companies.However,as China’s economic development entered a new normal state,the Chinese concept stocks companies began to embark on the road of return.To return to the domestic capital market,the Chinese concept stocks company needs to formulate a suitable return plan to reduce the cost and promote the development of the enterprise.This is ultimately a problem of the individualized interpretation of the return mode of Chinese concept stocks.After returning to the domestic capital market,the Chinese concept stock company can often achieve cross-market arbitrage and enhance the company’s market value.This paper studies the return mode of WuXi AppTec from the two perspectives of return mode and value revaluation.These two issues are worthy of discussion and are related to each other.WuXi AppTec ’s adopts traditional return mode,but in the specific operation,the original NYSE listed company WuXi Cayman split into three companies.They are respectively listed on the New OTC Market,the Hong Kong Stock Exchange and the Shanghai Stock Exchange.This mode essentially solves the financing arrangements and corporate governance issues in the company’s return process,and creates a lot of positive effects to increase the company’s value.It’s mainly reflected in the broadening financing channels,optimizing ownership structure,enhancing business concentration and improvement of low valuation.Each step of WuXi AppTec’s return is closely linked.The ingenious return path arrangement not only accelerates the company’s return process,but also achieves the goal of maximizing shareholders’ interests.It is worthy of reference by other companies.After the return of WuXi AppTec,the company gets a chance of value revaluation in domestic investors.After the company was listed on the Shanghai Stock Exchange,it successively harvested 16 daily limit boards.The highest total market value of the company reached 138.449 billion yuan.Compared with the privatization valuation,the market value difference is far beyond the actual growth of the company’s three-year profit.Using the valuation theory to study the value revaluation of WuXi AppTec,it is found that the intrinsic value of WuXi AppTec is different from the market value of both China and the United States,reflecting that WuXi AppTec is undervalued in the US stock market and overvalued in the A-share market in the short term.The analysis in this paper believes that this valuation difference stems from the influence of both internal and external factors.From the internal factors,the advantages of WuXi AppTec’s regression model can provide an explanation for the company’s valuation improvement.In terms of external factors,WuXi AppTec’s return has achieved cross-market arbitrage.The objective differences between China and the US capital market have created natural conditions for the company’s valuation improvement.These differences are mainly reflected in the differences in market characteristics,market mechanisms and investment logic.This paper also pays attention to the investment value of WuXi AppTec’s return from the perspective of institutional investors,through measuring the expected return of such investment,it’s found that the return of the China-concept-stocks company in the investment has a considerable expected return.In this perspective,the conclusion can provide practical reference to investors.