The Routes And Time For China Stock Returning To A-share Market

The Nineteenth National Congress of the Communist Party of China put forward the strategy of building an innovative country,developing a new economy and providing new momentum for the development of China's economy.The State Council and the Securities Regulatory Commission constantly issued new policies to attract many overseas "unicorns" enterprises to return to the capital market,which is the embodiment of the continuous implementation of the goal of building an innovative country in the Nineteenth National Congress,and also an important move to supplement the shortcomings of the capital market and cultivate Measure.In recent years,more and more excellent "Zhongguo" companies choose to withdraw from overseas capital markets and return to China's A-share market.From the mass media in 2015 to the end of 2017,they will return to the "Qihu 360" of Ashare market,and then to the listing of Yaomingkangde and Mairui Medical in 2018.These excellent overseas listed companies are setting off a wave of returning to China's A-share market.Firstly,this paper studies the background and motivation of the return of Zhongguo stock to A-share market,and summarizes the reasons why the start-ups listed in the United States at that time,the current development situation and the motivation of the return.This paper provides the corresponding analysis basis for the next focus on the case of Qihu 360.Secondly,it introduces the process of Qihu 360's return to China's capital market and the company's overall situation,calculates its repayment ability,operation ability and growth after the return by financial analysis,then makes corresponding analysis of its return motivation and opportunity,and finally calculates its abnormal return rate and cumulative abnormal return rate after backdoor listing by event study method,and its short-term performance.Finally,through the analysis of typical cases of stock approximation regression,the paper compares the relationship between different regression paths and regression timing,and puts forward corresponding countermeasures andsuggestions for other approximation enterprises to choose their future return paths and timing.This paper draws the following conclusions through research:(1)From the perspective of the motivation of the return of enterprises,the main reason why China's proposed shares choose to return to the domestic market after listing abroad is that the changes of market valuation at home and abroad are related to the changes of the company's own business and state policy support;(2)Looking at the Route of Return of Probable Stock,the path of return of China stock market is Privatization and delisting overseas—Release of VIE Agreement—Return to A-share Market;(3)From the point of view of return,Qihu 360 initially chose to go abroad for listing,which was related to the time point of capital market and capital demand of China and the United States at that time;and returned to A-share market in the strong period of domestic capital market;(4)In choosing the path of return,Chinese stock prospective firms need to combine with market timing to determine what kind of return mode they adopt.Based on the conclusions of this study,this paper draws the corresponding policy recommendations:(1)Improving the multi-level capital market,continue to promote the transformation of approval system to registration system;(2)Formulating different policies,timely launch of pilot system,promote diversification of the return path of Chinese stock companies;(3)Improving regulatory measures,in view of the unique VIE agreement system of foreign enterprises,supporting regulatory policies,return of Chinese stock companies.In the process of returning,we should strengthen supervision to prevent malicious arbitrage and insider trading.