Research On The Motivation And Path Of China Stocks Return

In the early days,many companies chose to go public in the US stock market because it had mature system,few restrictions and short review period.However,around 2010,Chinese companies experienced a downturn of stock prices and a crisis of trust.Many Chinese companies abroad chose to return to the domestic market through delisting and then seek opportunities to relist.This phenomenon has attracted widespread attention from scholars.The return path of Chinese stock companies is not smooth,because some companies are hindered from returning.As a biotechnology company,WuXi AppTec has successfully returned from NYSE through IPO.We use it as an example to study the motivation and path selection of its return,and to explore issues that should be noted to in the process.First of all,according to Undervaluation Theory,Transaction Costs Theory and Deregulation Theory,we can analyze causes of China stocks return.Then,we introduce three main paths that companies would choose:IPO,backdoor listing and CDR.By studying their advantages and disadvantages,we find that choices of the returning path are different.Secondly,it introduces the case background of WuXi AppTec's return.It elaborates changes of financial status and values of WuXi AppTec during its listing in NYSE.Thirdly,by analyzing the reasons for WuXi AppTec's return,it is concluded that the reasons for Chinese companies seeking to return are mainly to avoid the undervaluation of corporate value in NYSE,to make their own strategic adjustments,to reduce transaction costs and to prevent companies from bad influences of being repeatedly shorted.By analyzing the process of WuXi AppTec's return to A-shares,the reasons and problems of WuXi AppT's IPO's return to the domestic capital market are explored.WuXi AppTec chose IPO mainly because the company's equity structure is clear,the spin-off business is conducive to the improvement of corporate valuation.At the same time,the accelerated IPO review,the industry and financial status of the company are in line with the IPO return conditions.However,during the return,WuXi AppTec's fundraising plan was reduced,the issue of peer competition was questioned by the Securities Regulatory Commission,and the environmental protection administrative penalties received by the company affected the IPO process to a certain extent.After WuXi AppTec's return to A shares,the company's ability to repay debts,operations and profitability has improved significantly.Finally,this article draws enlightenment and puts forward relevant suggestions based on WuXi AppTec's case analysis.The enlightenment for Chinese companies who are willing to return is that they should choose appropriate paths according to their own needs and conditions,the window period should be grasped during the return,and the return process should be carefully planned.Relevant suggestions are proposed for Chinese companies:they should think rationally,avoid blindly following the trend,and pay attention to national policy orientation while focusing on improving their own strength.Regarding regulators,they should improve the relevant legal system for the return of Chinese stocks,continue to broaden paths Chinese stocks return,and actively maintain market stability.The return of WuXi AppTec is a typical event in the return of Chinese stocks.It has attracted the attention of many investors and scholars.An in-depth study of the causes and paths of WuXi AppTec's return will provide theoretical and practical information Help.