Research On The Return Of Overseas Listed Companies To The A-share Market

With the development of economic globalization,many private enterprises in China that do not meet the conditions for domestic listing have chosen to invest in international stock markets in order to seek better development.In 2010,overseas listed Chinese companies were attacked by short-selling organizations such as Xiangxi and Xishui,which resulted in heavy losses to Chinese companies.The stock price was undervalued and market transactions were not active.Under such circumstances,more and more overseas listed Chinese companies have chosen to privatize and return to the domestic capital market.Perfect World is a domestic game company listed on the Nasdaq Stock Exchange of the United States.After completing the delisting of privatization,Prefect World landed on the A-share market by selling assets to listed companies.Therefore,Perfect World has the entire process of going public-delistingrelisting that overseas listed companies have undergone.On the basis of reviewing the existing literature,this article selects Prefect World a research case and analyzes the company's specific conditions.In the impact of short-selling institutional attacks on companies,Prefect World performed well in the US stock market,stock prices continued to slump,trading volume was insufficient,corporate value was underestimated,making it abandon the privatization of the listing status options delisting.However,while Perfect World was delisting,it was also at a crucial stage in the strategic adjustment of the company.In order to ensure the successful completion of strategic adjustment,companies choose to return to the A-share market through a time-consuming way of reorganization of assets.This regression model is different from the traditional regression model and avoids the pain points of the traditional regression model.It has advantages such as simple procedures and no performance requirements.After the return of the Perfect World,not only the stability of the stock price has been significantly enhances,but also the market value and the price-earnings ratio have been higher than before the return.Moreover,the financial status of the company has improved markedly,profitability,debt repayment ability and operating capacity have improved significantly.This article hopes to provide reference for other overseas listed companies to be returned by analyzing the reasons,paths and effects of the return of privatization in the Perfect World.Overseas listed companies should rationally look at the return of privatization.While considering the risk of regression,they should fully measure costs and benefits and choose suitable development methods.