A Study On The Route Of HT Company's B-share To Return To A-share Of China Capital Market

The establishment of B-share is one of the key points of gradual opening of China's capital market.Its original intention is to raise foreign exchange funds and broaden financing channels.Due to the drastic fluctuation of foreign exchange rate,allowing domestic companies to list in Hong Kong,the establishment of QFII system for qualified foreign investors,and the opening of Shanghai Hong Kong stock connect and Shenzhen Hong Kong stock connect,the market position of B shares has gradually weakened.At the same time,B-share Listed companies are facing problems such as insufficient attraction to foreign capital,poor market liquidity,lack of financing function,and obvious discount between B-share and A-share of the same issuer.At present,it is not clear about the regulatory policy of returning B-share to A-share,but there have been many successful practice cases of returning A-share.Therefore,it is of great policy and practical significance to return B-share to A-share in order to protect the interests of investors.The research object of this paper,HT Company,is a B-share Listed Company,which has been listed for 20 years.Over the years,HT Company has been actively seeking for reform and equity restructuring plan of capital platform,hoping to build a platform with the ability to undertake resources in the short term to achieve greater development of the company.This paper first introduces HT Company's development process,operation status,financial performance and internal resources,analyzes the necessity of its return to A-share from the aspects of limited financing function,lack of liquidity and low valuation encountered by HT Company in the B-share market,and proves the feasibility of transferring to A-share from the aspects of capital market reform,macro policy and company strategy.Then,it studies the constraints of HT Company's return to A-share from two aspects: first,the external environment,mainly various policies,such as regulatory policy,exchange rate conversion,investor identity conversion,applicability of laws and regulations;second,the enterprise's own level,mainly various resource guarantees,such as future strategic direction,performance indicators,capital reserves,governance structure,management team Team,etc.From the perspective of maximizing the value of the company,this paper studies the path of HT Company to return to the mature mode of A-share,and puts forward the path of privatization and re listing,and the path of related companies' share exchange and merger.And from the policy,operability,cycle and other aspects of several paths were compared.According to the principles of policy feasibility,investor protection and cost saving,this paper makes a sort and selection of several schemes including the traditional path.Finally,this paper considers thatthe best regression path is to issue a shares to absorb and merge B shares.In addition,this paper studies the risk of HT Company from B-share to A-share,focusing on policy risk,market risk,internal business risk and its countermeasures.The purpose of this paper is to provide solutions for HT Company to solve the remaining problems of B-share return to A-share,and provide reference for HT Company to obtain capital platform in the future strategic development and capital operation.At the same time,I hope this study can provide reference for other B-share Companies to return to the A-share market,and provide market practice reference for the improvement or breakthrough of regulatory policies.