Analysis Of The Path And Effect Of The Stock Market In China

With the improvement of China's capital market,a number of Chinese concept stocks listed overseas are seeking a path to return.The low overseas valuation,the incomprehension of foreign investors,the malicious shorting of short-selling institutions,and the need for strategic transformation have all contributed to the acceleration of the return process.At present,the existing regression paths mainly include IPO,backdoor listing,reorganization listing(not form a backdoor listing)and the listing of the New Third Board.Each regression path has its own characteristics and applicable enterprises.This paper collects data to summarize each regression in order to provide reference for the return of the Chinese stocks to the A-share market.Through the study of the regressed stocks,it is found that the two regression paths for the current selection of stocks are IPO and backdoor listing,and the number of companies listed on the backdoor is more than the IPO.In the industry selection,the information technology industry's Chinese concept stocks mostly choose to return to the A-share market through the path of backdoor listing,while the health care industry's Chinese concept stocks mostly choose IPO to return.From the analysis of the time of the return,it was found that 2016 was the return highlight of the backdoor listing while the 2018 was the climax of the IPO.At present,the regulatory authorities have gradually increased their emphasis on the return of China Stocks.The Securities and Futures Commission issued a statement in December 2018 stating that it is currently studying the impact of the two regression paths of IPO and backdoor listing on the return of China Stocks.Through the analysis,the two representative companies that returned in the split mode: Perfect World and Wu Xi Pharma Tech as examples were analyzed.Through the company introduction,regression path research,regression cause analysis,regression performance(short-term,operating performance),the reasons for choosing this regression path,and the comparative analysis of the revelation of this kind of regression path to other companies,we can include the IPO and backdoor listing's commonalities and differences.What is common are that,first,the reasons for the return are external valuation,market,policy pressure,and strategic layout needs;second,the two companies face the risk of goodwill impairment caused by industry consolidation.The differences are: First,the different industry conditions are different in choosing the return path and returning performance;second,the two companies are different in their attention,and Wu Xi Pharma Tech is even worse;Third,the perfect world's return time is much shorter than Wu Xi Pharma Tech;Fourth,Wu Xi Pharma Tech's financing scale is much higher than the perfect world.It can be seen that the applicability,difference and different effects of the two different regression paths of IPO and backdoor listing.Finally,based on the double case analysis,the author proposes corresponding suggestions for different groups from the perspectives of stock companies,investors and regulatory authorities.For the Chinese stock companies,the main reason is to correct the return motivation,and choose the appropriate regression method in combination with the strategy.At the same time,it is necessary to keep up with the policy changes and adapt to the risks.Finally,they must do a good job of risk prevention.For investors,it is necessary to establish a rational investment awareness,stay away from speculative arbitrage stocks,and further enhance their investment literacy.For the supervision layer,they must accelerate the promotion of the CDR and science and technology sector on the one hand,and on the other hand,they must improve the delisting mechanism and avoid excessive speculation of shell resources.The main contribution of the thesis is: through the case of study,the influence of different path regression methods on the return of the enterprise is compared,and what is more suitable for different Chinese concept stocks to return.It is expected to provide enlightenment or reference for the Chinese concept stocks to return to the A-share market in the future.The shortcomings of this paper are : basing on the particularity of the stocks and the limited availability of the data,the analysis of the return of the stocks to the company may have inevitable shortcomings in the case of study.At the same time,due to the author's ability limitations,the depth and breadth of case analysis needs to be strengthened.