The Influence Factors Of The Privatization Delisting Of The Chinese Concept Stocks In The U.S. Capital Markets

Since 1990 s,Chinese enterprises set off a boom of listing in the U.S.capital markets.On the one hand,the conditions of listing in the domestic capital market were very harsh.On the other hand,enterprises were full of yearning for the international capital market,and hoped to enhance their visibility.At the same time,because investors were optimistic about China's economy,companies listed in the U.S.capital markets were generally recognized and sought after by them.However,since 2010,along with the number of companies listed in the United States began to reduce and the short crisis erupted,some of the Chinese concept stocks turned to seek privatization delisting,hoping to return to the domestic A-share market.The influencing factors of the privatization delisting of the Chinese concept stocks are various,such as the need to adjust the corporate strategy,the skepticism for VIE mode,the continuous development and improvement of the domestic capital market,the underestimate of its value and the short crisis in the U.S.capital markets,etc.This paper thinks factors that affect the privatization of Chinese concept stocks as the research object and will analyze whether the behavior is a rational return or blind pursuit,so as to provide reference for other enterprises.First,this paper reviewed the concept and theory of Chinese concept stocks and the privatization delisting and the study on the influence factors of privatization by domestic and foreign scholars,to provide theoretical basis and reference for the following research.Then,based on the real situation that the number of privatization of Chinese concept stocks increased,this paper took Giant Interactive Group Inc.,Focus Media and Shanda Group as typical cases to analyze the factors that influence the choice and success or failure of the privatization of Chinese concept stocks.The study found that influence factors of selection mainly focus on the undervaluation of enterprise value,strategic adjustment and the seeking of re listing in China,etc.,while influence factors of affecting its success or failure include privatization pricing,litigation risk and investors' recognition.To this end,this paper comes to a conclusion that we should treat the privatization behavior of the Chinese concept stocks rationally.In this paper,we think that in order to meet the return of Chinese concept stocks,the domestic capital market should be prepared to do a good job,and constantly improve the listing system and regulatory mechanisms.