On The Motivation And Economic Consequences Of Chinese Concept Shares Returning To A Shares In The Backdoor Listing

With the rapid development of the national economy and the optimization of the economic market environment,the domestic capital market currently has good development prospects.Due to the fact that most of the overseas listed companies that have obtained overseas financing are undervalued by overseas markets,the domestic capital market's policy system has been continuously improved,and many Chinese companies have chosen to privatize and return to the domestic capital market.So far,the number of Chinese concept shares that have successfully completed the privatization return has been increasing,which has also increased the enthusiasm of other Chinese concept shares to return to A shares.The listing methods of the domestic capital market mainly include IPO listing and backdoor listing.Compared with the high standards and long time consumption of IPO listing,backdoor listing can reduce the listing cost of enterprises and improve the listing efficiency.Many Chinese companies are also privatized after privatization.Choose to return to the domestic capital market by means of backdoor listing.Therefore,the return of the Chinese concept shares to the A-shares by the backdoor listing has become a hot issue of current concern.Qihoo 360,as a representative company in the stock market,experienced the process of going public in the US and then returning to A-shares.It is of great significance for the research on the relevant path,motivation and economic consequences of the stock companies returning to China's capital market.Therefore,this paper selects the case of Qihoo 360 to return to A shares by Jiangnan Jiajie.In this paper,the literature research method is used to sort out the research contents of domestic and foreign scholars on the characteristics of backdoor listing,the motivation of the privatization of Chinese concept shares,the motivation of choosing backdoor listing,and the financial effects of backdoor listing on corporate financial success.This paper constructs a theoretical system for the privatization of China Stocks and the listing of backdoors.Secondly,through the case analysis method,the motivation and economic consequences of Qihoo 360's listing of Jiangnan Jiajie are studied.In the case introduction,the situation of Qihoo 360 in the US stock market was introduced in detail.For the privatization process of the return,the specific background of the shell and shell companies,Qihoo 360 explained the case steps of Jiangnan Jiajie,including privatization.The specific path of return and the detailed steps of listing Jiangnan Jiajie.Then combined with the development of China Stock Market in the US stock market and the current status of China's current capital market,the analysis of Qihoo 360's return to A shares was analyzed.Then it analyzes the economic consequences of the backdoor listing,including the event research method to analyze the capital market reaction after the backdoor listing,and the economic impact on both the backdoor Qihoo 360 and the shell company Jiangnan Jiajie.Finally,based on the results of the previous study,the paper proposes suggestions on the risks of Qihoo 360 itself,the choice of other Chinese concept shares to return or go public,and the regulatory policies of the regulatory authorities.Through research,it is found that the return motivation of Qihoo 360 backdoor Jiangnan Jiajie can be summarized as the unsatisfactory valuation in the United States,the avoidance of free cash flow surplus,and the favorable market policy.In the analysis of economic consequences,the short-term performance analysis was analyzed by the event research method.In the short term,Qihoo 360 stocks had better returns and the capital market responded well.For the backdoor Qihoo 360,after returning to A shares through backdoor listing,capital was used.The external forces of the market have improved the financing capacity and optimized the shareholding structure.For the shell company,the asset replacement has solved the problem of the decline in the performance of listed companies,protected the interests of small and medium shareholders,and improved the wealth of shareholders.Finally,this paper summarizes and analyzes the relevant enlightenment of Qihoo 360's listing of Jiangnan Jiajie,and provides effective suggestions for the return of A shares of other Chinese stocks and the formulation of relevant policies of the regulatory authorities.