Study On The Cause And Effect Of Chinese Concept Stock Returning To A Share ——Take Mindray Healthcare As An Example

In the early 21 st century,with the rapid development of China’s economy,many quality businesses are produced along with them.At this time,China’s capital market has just started,the market access threshold is high,and these newly developed enterprises are difficult to meet the listing requirements of the domestic capital market,so they had to go to foreign capital markets for help,and Chinese stocks have been generated.However,since 2010,the financial fraud incidents of some overseas listed Chinese stocks have led to a collective crisis of trust in Chinese stocks,and in the following years,they have been frequently attacked by short-selling institutions.At the same time,the reform of the domestic capital market has gradually deepened,the relevant systems have gradually improved,and the state has successively introduced relevant favorable policies to welcome the return of high-quality Chinese stocks.Moreover,China’s economy has begun to embark on the road of improving quality and growth,many industries represented by medical devices have ushered in the "spring" of rapid development.So why did Chinese stocks take the initiative to leave overseas capital markets and choose to return to China for listing? What market sectors can they choose in the process of returning to A-shares? What has changed in these businesses since the return?These problems opened up the research ideas of the paper,considering the high attention of the medical device industry under the background of the epidemic and the uniqueness of Mindray Medical’s return to A-shares in the form of an overall IPO,the paper selected Mindray Medical as the research object,and after briefly introducing its regression process,in-depth analysis of its regression motivation,market selection in the regression process and the effect after the return,hoping to provide reference for other Chinese stocks that intend to return and enrich the theoretical research related to existing Chinese stocks.The paper first sorts out and comments on the relevant literature on the return of Chinese stocks,and then explains the relevant concepts of Chinese stocks,privatization and return of Chinese stocks,and uses theories of information asymmetry and market timing as the support for follow-up research.On the basis of these theories,the paper uses the case study method,combined with mindray medical’s own actual situation,to analyze the motivation for the return of Mindray Medical,and the analysis believes that the reason why Mindray Medical chose to return to A-share listing is because of the needs of the company’s own strategic adjustment,which is convenient to occupy the domestic medical device market,in addition to the high valuation of the domestic capital market is also an important factor to attract its return,of course,the return of Mindray Medical also has the impact of reducing the cost of listing maintenance,avoiding the attack of short-selling institutions and the favorable domestic policy environment.After a detailed analysis of the motives of Mindray Medical’s return,the paper next studied the market choice when Mindray Medical returned to A-shares,and finally divided its market choice into two aspects: listing plate selection and listing location selection,believing that Mindray Medical’s choice of Listing on the Chi Next Board was based on the obstruction of listing on the small and medium-sized board and the Chi Next Board matching the development strategy of Mindray Medical,and the reason for returning to the Shenzhen Stock Exchange in addition to the higher financing efficiency of the Shenzhen Stock Exchange is also closely related to the support of local governments.After that,the paper comprehensively used event research method,comparative analysis method,financial index analysis method and other methods to comprehensively explore the regression effect of Mindray Medical,and came to the final conclusion: after the return of Mindray Medical,the short-term market response is positive,the valuation of the enterprise is rapidly improved;the financial performance is significantly improved,and the overall financial risk of the enterprise is greatly reduced;the enterprise actively assumes social responsibility,has a closer relationship with investors,has more standardized internal control,has a firmer talent support strategy,and has a more prominent innovation-driven ability.Finally,the paper puts forward some suggestions for Chinese companies that intend to return.