Research On The Motivation And Path Innovation Of Chinese Concept Companies Return To A-share Market

In recent years,under the influence of china concept stocks' return tide,china concept stocks' return has changed from a popular investment topic to a highly controversial subject.At present,regulators strongly support the listing of new economy companies,selectively welcome the return of high-quality china concept stocks,and backdoor listing as a traditional return path has facing many uncertainties.Thus,china concept stock how to return to A-share market in a way with low risk,low cost and suitable path for themselves has become the main problem to be considered.This paper using case analysis method,using principal-agent theory,information asymmetry theory and pecking order theory as the theoretical basis,taking WuXi AppTec Ltd.as the case company,which is the first china concept company returning to A-share market in the form of IPO and it distinguishes itself from other companies by its unique spin-off listing strategy.This paper has come to the following conclusions: differences between Chinese and American capital market are the most important drivers for China concept stocks to return to A-share market.Specifically,it displays in the difference of valuation and investment logic.The spin-off strategy is not a simple random separation,it indeed closely integrated privatization financing schemes,corporate strategic development,general market environment and supervising policies.As a result,properly using the spin-off method could maximize the corporate market value,optimize the financing capability,clarify the operating structure and mitigate the agency problem.But at the same time,there remains some innate limitations and risks.At the end of this paper,it's suggested that China concept companies should strictly guard against regulatory and legal risks,consider carefully about privatization and set out suitable return scheme before they finally make the return decision.For regulators,they should guarantee the coherence and clarity of policies,meanwhile complete China's multi-level capital market system and diversify the return methods for China concept stock to attract high-quality overseas companies return back.