Research On The Motivation And Effect Of Chinese Concept Stock's Return To A-share Market

At the beginning of the 21st century,China's securities market has strict listing requirements and systems,and a large number of enterprises that intend to be listed are excluded from the market,unable to raise funds through the securities market.In order to obtain the capital needed for development and expansion,enterprises have embarked on the road of overseas listing.We call these shares issued by Chinese companies listed overseas Chinese concept stocks.Since 2010,the development of Chinese concept stocks in the overseas capital market has been hindered by many obstacles,and the opportunities for enterprises to obtain financing gradually become less and more difficult,hindering the enterprise's business development and the realization of strategic objectives.At the same time,China's capital market environment is gradually optimized.The valuation level of listed companies in the a-share market is higher than that in the American capital market.The huge valuation difference in the Chinese and American capital markets makes many Chinese companies eager to return to the domestic capital market.These enterprises believe that after returning to the domestic capital market,they can improve the market valuation of enterprises,so as to obtain more capital,greater growth space,and easier to get the trust and recognition of domestic investors.At the same time,the domestic government continues to introduce relevant favorable policies and encourages the return of Chinese concept stocks,triggering the return wave of Chinese concept stocks delisting.Wuxi also joined the wave of Chinese take-private and delisting in 2015 to return to a-shares.Based on the above environmental background,this paper selects the return of WuXi AppTec to the domestic capital market after its privatization and delisting as a case study.The steps of the privatization,the reason of the regression and the choice of the regression path of pharmacokinetic were analyzed in detail.Firstly,this paper introduces the research background and significance.Secondly,the paper summarizes the special concepts of Chinese concept stocks and the theory of superior financing to provide the corresponding theoretical support for the writing of the following paper.Then,the general regression reasons and common regression paths of Chinese concept stocks are summarized.Secondly,the whole process of the return of WuXi AppTec is reviewed and the effect of the return of WuXi AppTec is analyzed.Through the case analysis,the following research conclusions are drawn:first,Chinese stocks will be on the road of privatization under the common impetus of undervaluation,strict market regulation in the United States,intentional short-selling by short-selling institutions and support of domestic policies.Second,common regression paths of Chinese concept stocks include backdoor listing,IPO listing,spin-off listing and listing on the new third board.Thirdly,through the analysis of the effect of the return of WuXi AppTec,it is found that the privatization return has a positive promoting effect on the development of WuXi AppTec.Finally,this paper puts forward countermeasures and Suggestions,the purpose of which is to hope that the regulatory layer,Chinese concept enterprises,investors can seriously consider,rational treatment of Chinese concept return.