Research On The Motivation And Economic Consequences Of Ja Solar’s Backdoor Return

In 2010,China started the first wave of companies going public in the USA.However,the U.S.Securities and Exchange Commission’s requirements for Chinese concept stock companies have become higher and higher over time.In addition,because of the Financial fraud has led to Chinese companies which in the US market lose the trust.The original aim to get more money through overseas listings has been difficult to achieve.At the same time,the domestic market is constantly improving.Since 2011,many Chinese concept stock companies have chosen to privatize and delist,and hope to relist in the domestic market.Although this process is not smooth,many companies have failed at the delisting stage,such as Ju Mei You Pin,But it doesn’t stop many Chinese concept stock companies going back to home.In 2019,as the leader of the photovoltaic industry,JA Solar’s rapid return from privatization to backdoor listing attracted a lot of attention.This article’s new idea is the particularity of the case.Not only go back to the market quickly,but JA Solar is also the first Chinese concept stock company in the photovoltaic industry to return to A shares.New policies have been introduced.At the same time,the return coincides with the new crown epidemic,and the global economic growth is slowing.Through the study of its return incident,it provides reference for other photovoltaic companies that want to return.In this context,this article selects JA Solar’s backdoor Tian Ye Tong Lian as the research object,first,introduces JA Solar’s development fundamental state,and then the process of return: privatization,removing red chips structure and the re-listing of A shares,and then introduce the situation of the shell company named Tian Ye Tong Lian.Then I used the literature analysis method to sort out the general motivations of the company’s choice of regression,and then used the case analysis method to conduct a specific analysis of JA’s regression motivation,and combined with the company’s annual report to conduct an in-depth analysis.Through research,it was found that the Chinese concept stocks regression motivation Mainly due to the low valuation in the U.S.stock market,getting rid of financing difficulties,reducing listing maintenance costs,and policy factors.Regarding policy factors,as far as the photovoltaic industry studied in this article is concerned,the photovoltaic "dual reverse" policy introduced in the United States during a specific period.Meanwhile,China issued provisions to support the photovoltaic industry is also an important reason for its choice to return.Then use three methods to analyze the effect of the back of JA Solar.The research conclusions show that JA’s return is generally successful.In terms of stock price,the backdoor listing has enabled the shell company’s share price to rise sharply on every key news.For short-term market effects,the window period can make the cumulative abnormal return be positive,but it lasted for a short time.Through the analysis of financial indicators,it can be concluded that this regression did indeed improve JA’s profitability and development capabilities,but it had little impact on its operating capabilities,and debt servicing the ability has deteriorated due to a large amount of debt financing after the return,and there is still much room for improvement.Finally,through the case of General Crystal Australia,it is extended to all photovoltaic companies and even all Chinese concept stock companies that want to return,and provides suggestions for them.Finally,in light of the domestic market environment,it provides suggestions to regulators,hoping to attract more Chinese concept stock companies to return through more complete market supervision,and to escort the healthy development after the return.