Research On The Return Path Of China-related Stocks Privatization

In the 1990 s,Chinese companies set off a rush to go public in the United States,and the stocks of Chinese companies listed in the United States were called "Chinese concept stocks." The Chinese stocks are mainly concentrated in emerging industries such as biomedicine,Internet and education,mostly private enterprises.With the rapid development of China's economy,China Prospective Stock has been popular with investors since the reform and opening up.However,since June 2010,U.S.short-selling institutions such as Muddy Water and Citron have frequently launched attacks on China Prospective Stocks,and China Prospective Shares have suffered a heavy setback.Both trading volume and stock prices have fallen significantly.The poor financing environment has triggered a large-scale delisting wave of Chinese stocks.How should Chinese stocks choose a privatization return path suitable for the company's own situation,so that it has avoided potential risks during the return process and reduced the cost of return.Interested in returning to the focus of Chinese domestic stocks.Based on this,the research question of this article is: How should the return path of the privatization of Chinese stocks be chosen?The research idea of this article is: Focusing on the core issues,taking Mindray Medical as the research subject,starting from the current research and theories,a comprehensive analysis of the return path of Mindray Medical privatization.First of all,based on the relevant theory of the return path of the Chinese stock market,this article expounds the development of the Chinese stock market and the status quo of regression.Secondly,this article reviews the whole process of Mindray Medical's delisting from privatization,dismantling of the red-chip structure,and finally return to the domestic listing on the GEM.Based on the analysis of the motivation for the return of Mindray Medical's privatization,the privatization and delisting methods,the dismantling of the red-chip structure and the path to return to A shares are analyzed.Finally,evaluate the effect of Mindray Medical after returning to the market,so as to provide a reference for the return path selection for the Chinese stock companies that are returning or want to return.The research findings of this paper are:(1)Enterprises should choose the right time for privatization.When the value of Chinese stock companies is underestimated,they are more inclined to privatize and return to domestic listing.(2)There are three kinds of privatization methods when the Chinese stocks are delisted from the market: long-form merger,short-form merger and reverse stock split.When formulating a privatization delisting plan,it is necessary to consider the buyer's group composition,offer price,and privatization fund raising.(3)When dismantling the red-chip structure,there are two methods: equity transfer and capital increase.During the demolition process,companies need to avoid competition in the same industry and keep the issuer and the main business from major changes.(4)When returning to the A-share listing,the Chinese stock market can be considered from the two aspects of the listing sector and listing method: the listing sector includes the main board,the small and medium-sized board,the new third board,the Chi Next board and the science and technology board,and the listing method includes the overall IPO listing,IPO spin-off listing,backdoor listing,merger and acquisition listing and CDR model.Enterprises should make rational choices to maximize their own interests in light of their own situations.The innovation and application value of this paper lies in: through the analysis of the whole process of Mindray Medical's privatization delisting,dismantling of the red chip structure and IPO on the GEM,a comparative analysis model is established,and the regression path of the previous cases is summarized.These experiences can provide an effective reference for other Chinese stocks that want to return.