Research On The Motivation And Economic Consequences Of Chinese Concept Stock Companies Returning To A-Shares

In April 2020,the financial fraud incident of Luckin Coffee broke out in an all-round way,and then the US Senate unanimously passed a "Foreign Company Accountability Act",targeting Chinese companies.In fact,in recent years,the situation of Chinese concept stocks in the US stock market has not been optimistic:the number of Chinese companies’ IPOs in the United States has declined significantly,and more than 150 Chinese concept stocks have announced privatization and delisting.In the future,returning to the mainland capital market will become the development trend of Chinese concept stocks.Therefore,studying the return motivation and economic consequences of A-share companies that have returned can provide an effective reference for Chinese concept-stock companies that plan to return.This paper adopts the case study method to analyze the regression motivation and economic consequences of Mingyang Smart Energy(hereinafter referred to as "Mingyang Intelligence").This paper will analyze the reasons for the return of Chinese concept stocks in combination with the company’s own situation,industry characteristics,and domestic and foreign situations.mid-and long-term performance evaluation.Through the above analysis,the following conclusions are drawn:(1)The return of Chinese concept stocks is a rational decision made by the enterprise in combination with the life cycle,and the motivation for its return is often conducive to the long-term development of the enterprise.Based on the analysis of the reasons for the return of Mingyang Intelligence,this paper believes that improving corporate value,reducing listing costs,avoiding US stock supervision,adjusting corporate strategies,attracting domestic policies,and favorable market timing have driven the return of Chinese stock companies.(2)In the short term after the reunification,the market reaction of Chinese concept stocks has been good,and various financial indicators and company values have increased in the medium and long term,but there may be problems of imbalance in the proportion of capital in and out,and the market value will easily shrink in the later period.In view of the above conclusions,this paper puts forward the following suggestions:First,Mingyang Intelligence should strengthen the management and control of liabilities and current assets,and comprehensively improve the strategic layout of the enterprise;The second is that Chinese concept stocks that plan to return should make rational decision-making based on their own development conditions,and focus on capital management after the return;The third is that investors should invest rationally and improve their investment ability;Fourth,the regulatory authorities should further improve the domestic capital market system and strengthen the supervision of Chinese companies listing in the United States.