Research On The Risks And Prevention Of Backdoor Returns Of Chinese Stocks

In the early stage of China’s capitalist development,due to the imperfect Ashare listing system,many enterprises that failed to meet the listing requirements had to go overseas to list,forming the initial Chinese concept stocks.However,since2010,the market value of Chinese stock companies listed in the United States has been seriously underestimated and frequently subjected to malicious short selling by professional institutions.In this context,Chinese stock companies have chosen to return to the domestic A-share market,which finally triggered the first wave of return upsurge in 2015,setting a record for the number of enterprises returning to a record high.In 2020,the occurrence of financial fraud of Luckin Coffee caused a sensation in the entire capital market,which triggered a new round of trust crisis in the US stock market.Then,the US Senate passed the Foreign Company Accountability Act,which strengthened the supervision of foreign companies listed in the US.In addition,the continuous Sino-US trade friction intensified the contradiction between the two countries,and the financing environment of Chinese stock companies in the US capital market continued to deteriorate.At the same time,the domestic capital market has shown a prosperous scene in the past two years,the government has repeatedly stated that it will strongly support high-quality Chinesefunded enterprises listed overseas to return to the domestic capital market.Based on this background,this paper selects JA Solar,which successfully returned by backdoor in 2019,as a research case,and carries out the follow-up analysis process by combining literature research and case analysis.First of all,in the introduction part,the research object of this paper is expounded,that is,China Stock Exchange and backdoor return.Secondly,it combs and reviews the domestic and foreign research literature on the return of China Stock Exchange,backdoor listing and the risk of backdoor listing.Next,the theoretical basis of this paper is explained,and how these theories are applied in the following case analysis.In the case introduction part,the general situation of the enterprises of both sides of the backdoor is explained and the reasons for the return of Ja Solar are explored.At the same time,on the basis of combing the three stages of Ja Solar’s backdoor return in detail,the case analysis part also focuses on the causes and effects of risks in different stages according to the three stages of Ja Solar’s privatization delisting,dismantling VIE structure and backdoor return to A shares,and then explores the risk prevention strategies in these three stages.Finally,through the analysis and summary of case enterprises,it provides the following enlightenment for other Chinese stocks that intend to return to the A-share market by backdoor: follow the policy orientation and find the right time to return;Make a comprehensive evaluation and carefully select shell resources;Correcting the motivation of listing and designing the trading scheme rationally;Ensure stable operation and pay attention to avoiding market risks.