Research On The Return Path And Economic Consequences Of Chinese Concept Stocks

In the early days,companies in many emerging industries chose to list on overseas capital markets because they could not meet the restrictions on the same share rights of A shares at that time and the profitability conditions before the issuance.These companies that are listed overseas but whose main business and relationships are still in Chinese mainland are called Chinese concept stocks.In the early days of listing,overseas developed capital markets facilitated the financing of China Concept Stocks.However,as China Concept Stocks’ financial scandals broke out one after another and the US Securities Regulatory Commission publicly reminded China Concept Stocks of the investment risks of China Concept Stocks,China Concept Stocks encountered overseas At the same time,the China Securities Regulatory Commission has issued a series of policies to support the return of high-quality Chinese concept stocks.In this context,many Chinese concept stocks have begun to return to the domestic capital market.Due to the late occurrence of the return of Chinese concept stocks,current domestic and foreign scholars’ research on the return of Chinese concept stocks is relatively single and mainly focuses on the return path of backdoor listing.As the first Chinese concept stock to return in the form of an overall IPO,Mindray Medical With certain case specificity,this article can further enrich the relevant theoretical research content of the return of Chinese concept stocks by studying the return process and economic consequences after return.First,from the perspective of theoretical research,this article sorts out the relevant literature research on the return of Chinese concept stocks,and expounds related concepts such as privatization and red chip structure.On this basis,this article analyzes the general motivations and conventional paths of the return of Chinese concept stocks to privatization,and concludes that the main reasons for the return of Chinese concept stocks are underestimated corporate value,malicious short-selling,high listing maintenance costs,and favorable domestic policies.And in the five aspects of evading supervision,the return path is mainly backdoor listing,IPO,and mergers and acquisitions by listed companies.Secondly,this article selects Mindray Medical as a research case and analyzes the motivation,path and economic consequences of its return to A shares,and draws the following conclusions: The main reason for Mindray Medical’s return to A shares is to make up for the valuation difference;choose to IPO The return of the method is mainly due to the Securities Regulatory Commission’s restrictions on the return of Chinese concept stocks and the acceleration of the IPO approval of high-quality Chinese concept stocks;after the return,in terms of valuation,Mindray Medical’s stock price continued to rise,realizing the restoration of the company’s valuation.In terms of financial performance,Mindray Medical’s solvency has been substantially improved,its profitability and operating capabilities have been further improved,its development capabilities have remained stable,and its economic value added has further improved.In terms of non-financial performance,Mindray Medical’s employee incentive effect has been significantly enhanced,its R&D and innovation capabilities have been steadily improved,its share of the domestic market has further increased,and there has been a certain degradation in corporate governance.Finally,this article puts forward the following suggestions based on the return process of Mindray Medical and the problems that have arisen: First,the Chinese concept stocks should choose a suitable return path according to their own conditions and also correct their motivation for return.Second,the supervisory authority should improve the market mechanism and create a virtuous market environment.Third,small and medium investors should rationally invest in the returned China concept stocks.