Analysis Of The Motivation,Path And Effect Of Photovoltaic China Concept Stocks Returning To A-shares

Since the early 1990s,there has been a phenomenon of Chinese companies seeking to go public in the international market in order to obtain financing.Among them,the listing of photovoltaic companies in the US stock market can be traced back to 2005.Wuxi Suntech first completed the listing on the New York Stock Exchange.Many Chinese photovoltaic companies,including JA Solar,have successfully listed on the US stock market.However,the development of photovoltaic Chinese concept stock companies in the US stock market has not been smooth sailing.Since 2016,photovoltaic companies have chosen to privatize and exit the US stock market,hoping to return to A shares.JA Solar,as the first photovoltaic Chinese concept stock company that successfully returned to the A-share market by privatization,was rated as a typical case of mergers and acquisitions in 2019.It is typical for studying the return of privatization of photovoltaic Chinese concept stock companies,so this article selects JA Solar is the case company.After introducing the overall situation of the return of concept stocks in the photovoltaic industry and the whole process of the return of JA Solar’s privatization,this article focuses on the analysis of the return of privatization events from three perspectives:the motivation,path,and effects of JA Solar’s return to privatization.In terms of motivation,the use of the discounted free cash flow model for valuation found that the main motivation is that the value is seriously underestimated.Other motivations include excessively high listing maintenance costs,development of domestic capital markets,favorable industrial policies,etc.;in terms of path,from US stocks Delisting,dismantling the red-chip structure until returning to the market,and choosing the method of the backdoor party to analyze the whole process of the return of privatization.The study found that JA Solar’s choice of backdoor listing after privatization is more sensible,which significantly saves maintenance.Costs have also increased the success rate of listing;in terms of regression effects,the event research method was used to analyze the short-term effects of JA Solar’s backdoor listing event,and it was found that the event had a positive effect at the moment and the market gradually returned to calm,using financial ratio analysis According to the analysis of various financial capabilities,it is found that after the return of privatization,JA Solar’s profitability and development capabilities have improved,but there is still a lot of room for improvement in debt solvency.Market development and other related effects are analyzed.Finally,based on the research conclusions,targeted suggestions for the development of other photovoltaic Chinese concept stocks that are willing to return and the domestic capital market are put forward.PV Chinese concept stock companies should have a clear strategic positioning,choose a listing method according to their own listing requirements,grasp policy dividends,and pursue sustainable development after listing;at the same time,relevant departments should improve my country’s multi-level capital market system and strengthen supervision to become a Chinese concept stock Enterprises return to provide a more standardized development environment.