Study On The Motivation And Economic Effect Of Mindray Medical Privatization Return To A-share

In the early stage,many high-tech enterprises chose to be listed in foreign capital markets,for the reason that they could not reach the threshold of domestic listing.Such enterprises that were listed overseas but still operated in China were called Chinese concept stock enterprises.Under the background that the state continuously issued policies to support high-quality Chinese concept stock enterprises to return to the domestic capital market,many Chinese concept stock enterprises choose to return to A shares.The case selected in this paper is Mindray Medical,which is the first Chinese concept stock listed in IPO as a whole,and has certain typicality.The selection of its regression path can provide reference for other enterprises.Based on the existing research results and relevant theories,this paper studies and analyzes the case of Mindray Medical privatization and return to A-share.This paper first describes mindray medical’s operating conditions and its return process,then analyzes the relevant reasons for its privatization return,and analyzes the economic effects of its return from the three levels of market response,financial performance and non-financial performance by using event study method,principal component analysis method,and finally puts forward countermeasures and suggestions.This paper found that :(1)the internal motivations for mindray’s return include making up for the valuation difference between China and the us,avoiding the attack of short-selling institutions,reducing the cost of listing maintenance and adjusting the enterprise development strategy.The external motivations include domestic policy support for the return and the prospect of the domestic medical equipment industry;(2)In terms of market reaction,the market responded well after privatization,and the market value increased after the return to China;(3)In terms of financial performance,debt paying ability,profitability and operating ability are improved,and development ability is stable;(4)In terms of non-financial performance,r&d capacity is improved,market share is expanded and staff efficiency is increased.At the same time,mindray medical also had some problems in the process of regression.Accordingly,this paper puts forward countermeasures and suggestions for Chinese concept stock enterprises,investors and regulatory authorities.