Analysis On The Motivation And Path Choice Of China Stocks Returning To Listing

Due to the high threshold of domestic listing,it is difficult to meet the company's financing needs.Since the 1990 s,more and more Chinese companies have gone abroad and went to the United States to list.These companies are therefore also known as Chinese stock companies.At the initial stage of listing,China's stock market was highly sought after by American investors,and its stock price continued to rise.However,the good times were not long.Since 2011,a number of China's stock market companies have been shorted.At the same time,the development of the domestic capital market has continued to improve.With the reform of a series of systems and the implementation of preferential policies,more and more Chinese stock companies have begun to join the boom of returning to the market.The return of stocks has also become a hot issue in the domestic capital market.So,what are the reasons for the return of the Chinese stock company? What is the return path? After the backdoor returns have been limited in recent years,what new paths have China Securities Holdings taken? How is the new path different from other paths? What types of businesses are suitable for different paths? Aiming at the above problems,this article takes WuXi PharmaTech as an example,and finds the answer to the above questions by analyzing its regression drivers and its unique "one split,three" regression path.This article is divided into five parts.The first part of the article is an introduction.This part first puts forward the background and significance of the research,then summarizes the literature review on the return of China Stocks to listing by combing the existing literature,and finally elaborates the case study ideas and the research adopted method.The second part summarizes the theoretical basis of the return of Chinese stocks to listing.It mainly introduces five sections: related meanings,path selection models and effects,the reasons for return to listing,the factors affecting path selection,and the theoretical basis.It is used for case analysis later.lay the foundation.The third part mainly introduces the basic situation of the case that WuXi PharmaTech returns to the market.First,through the case background and company profile,it clarifies the industry environment,the company's own situation,and the basic situation of privatization and delisting.Secondly,the paths taken by WuXi PharmaTech in the process of regression are described in detail from the selected path and the listing section.Finally,the specific return to WuXi PharmaTech's entire return to the market is introduced.The subsidiaries Hequan Pharmaceutical and WuXi Biologics were listed on the NEEQ and Hong Kong stock market,and the parent company WuXi PharmaTech entered the A-share market through an IPO after the first two companies successfully returned.The fourth part analyzes the motivation,path and effect of WuXi PharmaTech's return to the market.Among them,the reasons for WuXi PharmaTech's return to the market mainly include the support of related policies and changes in the domestic regulatory environment,the need for company strategic adjustments,higher maintenance costs for listing on the US stock market,and the company's stock price valuation,which is far lower than its domestic counterparts.After comparing the applicability of different listing paths to WuXi PharmaTech,and analyzing the company's own business diversification,large financing needs,and concentrated equity,it was found that spin-off listing is more suitable for WuXi PharmaTech than other paths.Then it analyzes the effects of choosing this path after the return,which mainly includes the financing channels have been broadened,the stock price and market value have been greatly improved,the company's incentive mechanism has been improved,and its operating performance has continued to improve.The fifth part summarizes and summarizes the entire case analysis,and proposes the corresponding enlightenment based on the conclusions of the case study.For Chinese companies with a willingness to return,on the one hand,they should maintain rationality and clarify the reasons for return in light of their own conditions to ensure that the return to the domestic capital market can have a positive effect on the company's development.On the other hand,when choosing a regression path,we must fully weigh the costs and possible risks of different paths,so as to choose the most suitable regression method.For regulators,they must continue to improve relevant rules and regulations,establish a more mature and complete capital market,and create a good return environment to attract more high-quality Chinese stocks to return.