Study On The Motivation And Financial Performance Of Perfect World’s Return To A-share Market

In the early 2000 s,due to the high entry threshold of the domestic capital market,the majority of investors are overseas investors,and the relatively loose supervision of overseas markets,the domestic game industry set off a frenzy of listing in the US.However,shortly after listing in the United States,Chinese stocks on Nasnak Market were not consistently favored by investors,and most of the companies were undervalued and their share prices plummeted.Coincident with the beginning of 2013,the rapid development of mobile game in China,the domestic Internet industry was sought after by the capital market,the national policy mechanism was increasingly mature,and the gap between the hot and the cold market in the US became the fuse for the return of Chinese stocks.During this period,such as grand game,giant game industry head company privatization in full swing withdraw the city,planning to enter the domestic capital market afresh.In 2015,Perfect World announced that it was preparing to be privatized and delisted,and issued an offer.Only 16 months later,Perfect World successfully entered the domestic capital market in 2016.In such a short period of time,how to quickly complete the privatization delisting and return to the market,what is the motivation of the privatization delisting,the realization path,the effect and the reference significance of the privatization delisting deserve further consideration and research.This paper first sorted out the reference to consult the relevant theoretical basis.Then,using case analysis method,taking Perfect World Company as the research object,this paper elaborately combs the process of dismantlement of VIE agreement after privatization and return to A-share market by means of asset injection,analyzes the motivation of its return to domestic capital market after privatization and the performance of the company after privatization.Finally,on the basis of the above case analysis results,this paper analyzes the reference of the Perfect World case for other Chinese theories,which need to make decisions based on specific conditions and analysis.Influence through the study found that perfect world to make the privatization delisting decision for two reasons: first,the privatization is largely due to the value of a perfect world is undervalued by the market,investigate its root reason mainly includes the short-seller frequently attack generalized shares,the formidable valuation logic generation gap,capital market,the underlying valuation model and business model of online game products industry is different.Second,after delisting,I chose to return to A-shares because of the attraction of the improved domestic policy environment,the support of domestic investment organizations,the increasingly rich successful experience of the return of Chinese stocks in the past few years,and the urgency of terminal game business transformation and product strategic layout of Perfect World.Through the comprehensive analysis of the reaction of the capital market to the return of the perfect world by the event study method,it is found that in the short term,the cumulative excess returns are high,the trend of stock price fluctuation is good,and the market valuation is greatly improved compared with the previous one.In terms of financial performance,the author has carried out a comparative analysis between vertical time and horizontal industry.In the vertical analysis,the method of financial indicators has been applied.The results show that the profitability,debt paying ability and development ability of the perfect world have been significantly improved after the return,while the operating capacity has not changed much.Through horizontal comparison and analysis with other stocks in the same industry,it is found that the overall performance after the return is better than that of other stocks in the same industry.Debt paying ability,profitability and operating ability have all been improved,but the development ability is relatively slow.From the perspective of EVA added value,the return of the perfect world has a positive effect on enterprises.Finally,the conclusion is drawn that in terms of the path selection of returning to the domestic capital market,different from the traditional "privatization + backdoor",the perfect world first splits the backdoor,then privatizes and finally infuses the assets,which avoids the possible operational risks and saves a lot of capital preparation time and investment cost.Returning to the perfect world of the domestic capital market,the market reflects that the financial performance is better.In the process of regression,the most critical step is to arrange shell companies in advance,and their performance in the regression path selection,the integration of related business resources,the efficiency of regression and other aspects is worth studying.