Research On The Motivation And Financial Impact Of China Guangdong Nuclear Power’s Dual Listing And Returning To A-share

With the proposal of carbon peaking and carbon neutrality goals,China’s new energy power generation industry has become more and more prosperous with policy support,but many new energy power generation industry enterprises have received a negative market response after listing in Hong Kong stocks.This phenomenon is not limited to the new energy power generation industry,nor to the China-concept-shares listed in Hong Kong stocks.Therefore,most Chinese enterprises listed overseas either seek to return to A-share through privatization and delisting,or seek to achieve dual listing in A-share.Among them,CGNPC,a representative enterprise in the new energy power generation industry,has achieved dual listing.Through the analysis of China-concept-shares in different markets,this paper intends to explore the reasons for the return of China-concept-shares,and explore the impact of this return through the analysis of CGNPC in the case,and study whether there are other motivations.On the premise of the above research purposes,this paper first briefly discusses and summarizes the previous research results on the return motivation of overseas enterprises,the impact of return and the phenomenon of A-share premium on H-share,so as to lay a foundation for the subsequent analysis;After that,this paper reviews the general situation of overseas listing of Chinese enterprises since 1988,expounds the background of the return tide of overseas listed enterprises in recent years,including case enterprises,and briefly describes the motivation of the return of China-concept-shares in recent years.Specifically,the return of China-concept-shares in Hong Kong stock market is to reduce financing constraints and investment costs,while that in US stock market is to avoid risks and reduce the expected rate of return of investors in line with market segmentation theory;Based on the theoretical hypothesis of regression motivation and the background of regression,this paper analyzes the general situation and regression process of CGNPC in the case enterprise,and preliminarily verifies the motivation of its regression.It is considered that,as mentioned above,alleviating the financing constraint is the primary motivation of its regression;After that,this paper uses the event analysis method and financial index analysis to analyze the market reaction of its dual listing return and the financial performance before and after the return.The result is that the Hong Kong stock market has a positive response to the return of CGNPC to A-share,indicating that the return of A-share does help to alleviate the financing constraints of the case enterprise.In the performance index analysis,the financial performance index did not rise after the return of CGNPC to A-share but declined.Therefore,this paper believes that this decline in performance may reflect another reason for the return of the case enterprise,that is,the controlling shareholders’ pursuit of the invisible benefits of control.To sum up,based on the above research results,this paper puts forward the following suggestions.Firstly,in terms of enterprises themselves,in the face of the upsurge of overseas enterprises returning to the domestic capital market in recent years,enterprises should judge carefully and reasonably choose whether and how to return according to their own conditions.For enterprises that choose to return,they should appropriately control the scale of value capital to prevent the waste of funds;Secondly,in order to prevent enterprises from excessively pursuing the implicit benefits of control and damaging the interests of investors,the regulatory authorities should strengthen supervision,enrich the channels for investors to protect the rights and interests of small and medium-sized investors;Finally,in terms of capital market construction,this paper proposes to establish a multi-level capital market centered on the registration system.Therefore,relevant systems should be introduced to urge enterprises to improve information disclosure,create a more liquid and orderly market environment for enterprises,and fundamentally improve the attractiveness of China’s capital market.The research conclusions of this paper provide reference for Chinese enterprises Regulators and capital market builders provide a certain reference.