Study On The Motivation,Path And Economic Consequences Of Returning A-Shares Of Listed Chinese Enterprises In The United States

In the early 21 st century,there was a wave of overseas listing of Chinese stocks.The A-share market was unable to meet the rapidly growing financing needs of domestic companies due to the high barriers to entry.The relatively mature mechanism of the US stock market attracted a large number of Chinese stocks going to the US for listing.For more than two decades,the domestic capital market has been expanding and the mechanism has been maturing,but the shortcomings of US stock listing have emerged.Especially after the collective short-selling of Chinese stock companies since 2011,the stock price has been sluggish for a long time,and the cost of going to the US to go public exceeds the listing revenue.The listing proceeds have triggered a wave of privatization and delisting of Chinese stock companies.As of 2019,more than 140 Chinese stock companies have completed the privatization and delisting,most of them have expressed their willingness to return to A-share,but there are only a handful of successful returns.As a leading domestic Internet company,Qihoo 360 has become one of the few Chinese stock companies that has successfully returned to A-share by backdoor listing.Therefore,this paper will study the whole process of the return of this representative Chinese stock company and analyze the economic consequences after the return,in order to provide theoretical and practical reference for other American listed stock companies seeking to return to A-share market.On the basis of summarizing relevant domestic and foreign literature research,this paper based on information asymmetry theory,market timing theory,transaction cost theory and tax burden saving theory,deeply analyze the motivation,path choice and economic consequences of Qihoo 360 delisting from the privatization of the US stock market and backdoor Jiangnan Jiajie return toA-share.Regarding the research on the motivations for regression,this article compares the differences in listing costs,market environment,company performance,etc.between Qihoo 360 and US and A-share Internet companies.Based on the development status of the company itself,the analysis shows that Qihoo 360's privatization and retreat motivations for the return of the city include seeking a stable listing environment,increasing company valuation,reducing listing maintenance costs and adjusting company development strategies.Regarding the research on the regression path,this paper compares Qihoo 360's choice of IPO and backdoor listing from the perspectives of time cost,financial cost and probability of passing.At the same time,it studies the characteristics of the shell company Jiangnan Jiajie in terms of corporate market value,shareholding structure,company performance,etc.According to the characteristics of Qihoo 360,the backdoor listing of Qihoo 360 has lower IPO time costs and financial costs,and a higher probability of passing.It is an efficient and stable return path.As a shell company,Jiangnan Jiajie has both economy and high quality.Regarding the research on the economic consequences of the return,this article analyzes the stock market response of Qihoo 360's return using the event research method,and also studies the changes in the company's corporate value and financial performance before and after the return.The analysis shows that Qihoo 360's return is fully capitalized by the capital market.It is recognized that the value of the company has increased significantly.Although the company is facing pressure from the growth of its main business income,its profitability,solvency and operating capacity continue to increase,which generally meets the economic expectations of the return.The research feature of this article is to use the event research method to study the stock market response of Qihoo 360 regression,and also analyze the long-term economic consequences of the return of A-share listing through financial performance indicators.This article provides a case reference for Qihoo360's return to the A-share market for companies intending to go public in the United States,Chinese stock companies planning to return,and national regulatory authorities,in order to help them make more reasonable and effective decisions.