China Energy Construction A+H Share Dual Listing Research On Causes And Economic Consequences

Under the guidance of the Shanghai Shenzhen Hong Kong Stock Connect policy,more and more companies choose to list simultaneously in the mainland and overseas(such as Singapore,New York,and Hong Kong).Currently,among the enterprises that have achieved dual listing in China,the phenomenon of H-share enterprises returning to the A-share market is the most common and most noteworthy.Due to the relatively backward capital market in China compared to developed countries,as well as the characteristics of a control structure characterized by centralized ownership and more ultimate ownership by the government,the situation of dual listed companies in China is significantly different from that of dual listed companies studied abroad.The vast majority of Chinese companies are listed overseas before going dual listed in China,while companies in Western countries are almost listed domestically before going dual listed abroad.Therefore,based on the unique characteristics of the return of Hong Kong listed companies to the mainland market under the unique economic system of China,this article analyzes the possible motivations and economic consequences of dual listed companies.This article selects China Energy Construction,the first company to implement the restructuring of a central enterprise after the promulgation of the "Three Year Action Plan for the Reform of State-owned Enterprises" issued by the SASAC of the State Council,as the case study object.Firstly,it introduces the development status of A+H dual listing in China,including the process of opening up the capital market in China,the status quo of the issuance mode to achieve dual listing,the dual listing issuance mode,and the macro background of returning to the A-share issuance mode.Then,a brief introduction was given to the merging parties involved in this restructuring,China Energy Construction Corporation and Gezhouba.Analyze whether the share exchange price of Gezhouba,the issuance price of China Energy Construction Corporation,and the share exchange ratio are reasonable under the same control.Given that China Neng was successfully listed on September 28,2021,and continues to analyze the reasons for its restructuring,it is found that there are mainly five reasons under the influence of the internal and external environment.Under the influence of the external environment,it is mainly due to policy incentives and higher P/E ratios in the A-share market.The internal motivation is mainly because the realization of dual listing through restructuring can optimize resource allocation,improve the return on investment of small and medium-sized shareholders,eliminate horizontal competition,and give play to the advantages of the industrial chain.Next,analyze the economic consequences of China Energy Construction’s dual listing from four aspects: market performance,the price difference between A-shares and H-shares,performance indicators,and social responsibility based on the "dual carbon" background.Finally,based on the analysis of this article,China Energy Construction Corporation has brought positive economic consequences to the enterprise as a whole after achieving dual listing.This article studies and analyzes the case of China Energy Construction’s A+H share dual listing,exploring the background,characteristics,external and internal motivations of dual listing,and examining whether companies can improve financing conditions through dual listing.This can provide reference for future case studies,and provide reference for relevant corporate governance decision-making,government regulation,and the construction of China’s capital market.