The Market Reaction And Financial Performance Of "China Concept Stocks" Companies After Their Return To A-Share Market

"China Concept Stocks" companies have been actively sought after by the market because of their coming back to the A-share market since 2015.But at least in the medium term,the performance of many "China Concept Stocks" companies after their return is not "eye-catching".Taking the return of "China Security & Surveillance Technology" to the Ashare market as a case,it is of important practical significance to explore the sharp contrast as well as its internal mechanism between the companies'(that come back from overseas)soaring market value in the short-term after the return and their mediocre performance in the medium and long term,which will be helpful to market subjects' rational understanding of the return of "China Concept Stocks",and will be conducive to the regulatory authorities to improve regulatory regulations.The paper mainly expounds the basic principle of the privatization regression of "China Concept Stocks" and investigates the motivation and process of that,it also analyzes the short-term market reaction and long-term financial performance after the return and summarizes the conclusion and enlightenment of this case analysis,then puts forward the following thesis.The main ideas of this thesis are as follows:1.Different "China Concept Stocks" companies have their own suitable routes to return to the A-share market."China Security & Surveillance Technology" does not choose to go public by backdoor listing after privatization and delisting,instead,it adopts the way of backdoor listing plus asset injection.After completing the backdoor listing of the same controller's domestic company "Security & Fire","China Security & Surveillance Technology" injects its domestic operating entity into the main body of listed company to achieve "curve regression".2.The short-term market reaction after the return of "China Security & Surveillance Technology" was positive and decent.After the announcement of major asset reorganization,the market value of Shanghai Feilo Co.,Ltd increased by 152% to 7.75 billion yuan from 3.08 billion yuan.The share price rose from 4.65 yuan per share to 10.27 yuan per share(February 24 th,2014).3.The interim financial performance after the return of "China Security & Surveillance Technology" is not optimistic.Compared with 2015,the rate of return on common stockholders' equity and the net profit of shareholders belonging to the parent company of "China Security & Surveillance Technology" decreased by 39% and 406% respectively.As a result of poor management,the early warning of delisting has been given,so the stock abbreviation has been added "ST".4.The "China Concept Stocks" companies should consider whether it is necessary to return to the A-share market from the perspective of long-term development strategy.Regulators should stabilize and improve the policy of return of "China Concept Stocks" enterprises,simultaneously,select high quality companies that intend to return.Investors should be cautious about the investment opportunities of the return.The paper aims to identify the original intention of the return of "China Concept Stocks" and its impact on the A-share market and investors through analyzing the market reaction and financial performance of the case company's return.However,the paper also has defects,mainly because the case company has not returned to the A-share market for a long time,and its observation period of financial performance is still relatively short.The follow-up study will tail after the business and performance changes of case company and similar companies in order to expand and deepen the research awareness.