Case Study Of Pinduoduo's Cross-border IPO

Driven by the globalization of capital,China's domestic economy is also developing rapidly,and various industries are rising rapidly.In order to realize innovative development,many domestic enterprises choose to go public across borders to meet their financing needs.As a big consumer,China has also promoted the development of many e-commerce industries in recent years.Especially after the Chinese government introduced relevant supporting policies for e-commerce in 2013,the domestic e-commerce industry has developed rapidly,and many enterprises want to realize the purpose of financing demand and optimizing resource allocation through cross-border listing.As the research object,based on the spelling of company to market segmentation hypothesis,investors cognitive hypothesis and investor protection hypothesis,etc as the main theoretical basis,by using case study and event study the research method of combining the spell of cross-border listing process,after the listing of motivation,performance and the market reaction was studied,in order to later to provide reference for domestic electricity cross-border listing and development.Through analysis and research,it is found that :(1)differences in domestic and foreign capital market systems and environment attract pinduoduo's cross-border IPO listing,but financing and the improvement of corporate image are the most fundamental reasons for pinduoduo's listing;(2)The analysis results of financial data show that Pinduoduo has great profitability problems,but good solvency,growth ability and operation ability;(3)In the market reaction analysis,compared with Alibaba,Pinduoduo's short-term market reaction is more volatile,while its long-term market reaction is good,indicating that the value of the company is recognized by investors in the long term.Based on the analysis data of the full text,the paper believes that :(1)in the boom of cross-border listing,domestic e-commerce enterprises should carefully choose the listing place,grasp the listing time,strict market environment and supervision system can restrain the development of enterprises,improve internal governance,is the necessary guarantee for the long-term development of enterprises.Similarly,it is also the touchstone of enterprise quality,a slight mistake will face short risk;(2)Select the listing mode according to their own conditions,reasonably avoid their own shortcomings,and achieve a low-cost and efficient listing;(3)While meeting the financing needs,more attention should be paid to improving thecomprehensive performance level of the enterprise,keeping high attention to the financial risks of the enterprise,supplementing the weakness of performance ability,and ensuring the healthy and long-term development of the enterprise;(4)Pay more attention to corporate image,strengthen brand building,improve corporate strength,gain the confidence of market investors,and reduce the risk of malicious short selling.