Study On The Performance And Risk Of Chinese Concept Stocks Returning To A-share Market

In the early 21 st century,China’s economy maintained rapid growth and the Internet developed rapidly.Internet companies represented by sina,netease,sohu and other companies successfully listed in the United States,which opened the curtain for Chinese companies to list in the United States.On average,15 companies listed in the US every year...These overseas listed Chinese companies collectively known as Chinese concept stocks.Although listing in the us capital market has its own unique advantages,there are also many risks.Valuation is low,foreign to domestic firms are not familiar with factors such as volume is low,and many are shares in the company of the financial,foreign market attaches great importance to the disclosure of the enterprise,represented by muddy water company short-seller shorting,huge legal settlements,and so on factors lead to many enterprises can’t afford to,choose privatisation exit in foreign capital markets,listed on the target to the domestic market.However,due to the high financial requirements for listed companies in China,long IPO approval time and low pass rate,many enterprises are rejected from the a-share market,unable to obtain financing channels,which affects the development and growth of enterprises.Therefore,many Chinese companies choose to backdoor listing in the domestic capital market,so as to reduce the time cost,accelerate the pace of listing,and then through A series of capital operations,so as to successfully list in A shares.The case selected in this paper is the case of the company that was privatized and delisted from the US market and successfully listed in the A-share market by backdoor listing of SJEC in the domestic capital market.After backdoor listing,the company became the largest Internet company in the domestic a-share market at that time.The selection of 360 as the research object is not only typical,but also has its particularity,which not only concerns the impact of national attention to the macro environment of Internet security,but also has reference significance for the regression of other Chinese concept stocks.This paper adopts the case study method and combines the theory with the case to write the paper from five major parts.It focuses on analyzing the motivation and process of the regression of concept stocks and the backdoor listing.Through the regression backdoor to the enterprise financial performance of the impact.Exploring the valuation of backdoor privatization.Analyze the risk factors in the whole process.Reveal the logical relationship among performance,valuation and risk.In the logical structure of this paper,firstly,the background and significance of the case study are introduced.Secondly,the concept of backdoor listing of Chinese concept stocks is clarified,and relevant research theories at home and abroad are elaborated.Then,it studies and analyzes the short-term and long-term financial performance generated by the regression backdoor.Through horizontal comparison and vertical comparison,it analyzes the impact of the regression backdoor on the short-term and long-term financial performance of 360,and studies the related risks faced by the backdoor.In the end,it comes to the conclusion that the regression of Chinese concept stocks,the influence of backdoor on performance,risks and countermeasures should be viewed dialectically.