A Study On The Return Of Chinese Concept Stock Privatization And Its Economic Consequences Under Timing Motivation

In the 1990 s,the country vigorously promoted technological innovation to facilitate the development of new industries such as the Internet,media and online games,enterprises that rapidly entered the growth period were eager to go public to obtain development funds,but at that time,the domestic capital market was difficult to meet the financing needs of enterprises,so Chinese companies have opened a new chapter of overseas listing.However,the market of Chinese stocks did not stay hot,and the value of Chinese stocks in the U.S.dropped rapidly owing to the repeated shorting crisis,the escalation of the Sino-U.S.game and the deterioration of the external regulatory environment.At the same time,the valuation timing brought by the increased activity of domestic capital market and the policy timing brought by the favorable system have further promoted the return of Chinese stocks,and the timing motivation has once again become a hot topic in the return of Chinese stocks.In the context of encouraging the listing of high-tech industries on the Science and Technology Venture Board and the implementation of the registration system,this paper takes Montage Technology,the first company to be listed on the Science and Technology Venture Board(STB),as an example,to study how Montage Technology uses the valuation timing and policy timing to enter different capital markets under the timing motive.Firstly,we analyze the motives of the privatization and domestic relishing of Chinese stocks based on the market timing theory,and find that the whole process is quite consistent with the trend of the US and Chinese capital markets.Secondly,we establish a framework for analyzing the economic consequences of marital re-listing of Chinese stocks,and investigate the impact of domestic re-listing of Chinese stocks in terms of financial performance,management performance,and value creation respectively.In addition,we apply the market timing theory to the case study to examine the timing phenomenon in the privatization-return of Montage Technology to the inland market.In terms of valuation timing,the active domestic capital market brings high valuation for high-tech companies;in terms of policy timing,the implementation of the STB and registration system shortens the listing time,reduces listing fees,and increases the financing scale,which become important reasons for Montage Technology to land on the STB.Finally,the monetary consequence analytical framework is implemented to evaluate the financial performance,non-financial performance and value creation ability of Montage Technology after listing on the board in both horizontal and vertical comparisons.In terms of financial results,the profitability,operating capacity and solvency of Montage Technology has been improving,while the innovation capability,which is a major concern for the companies on the board,has shown a significant increase in research investment and R&D output.In terms of non-financial performance,Montage Technology has improved its incentive mechanism and optimized its business layout,and its market share of core business has been improved.In terms of value creation,Montage Technology has improved its corporate EVA level after its listing on the STB,and the market has shown a positive attitude towards its re-listing,and the return motive under valuation timing has been verified.All the positive effects brought by the IPO on the STB fully reflect the correctness of Montage choice of return under the timing motivation,which has evident reference significance for other proposed Chinese companies.Therefore,this paper proposes corresponding suggestions for Chinese stocks,regulators and investors respectively.Firstly,it is hoped that Chinese stocks can calmly analyze the existing return timing and return path,seize the valuation timing while studying the benefits and risks brought by policy changes to enterprises,and avoid touching the policy red line that leads to the decline of enterprise valuation.Secondly,the regulator should actively innovate the return path for Chinese stocks and simplify the unnecessary listing process,improve the listing standards for each listing segment,open up communication channels,understand the needs of Chinese stocks and correct bad motives in a timely manner,and avoid the irrational return of Chinese stocks in blind pursuit of high valuation,which will lead to market chaos.Finally,investors should take a rational view of the valuation effect brought by the spousal re-listing of Chinese stocks and take the initiative to collect information about the companies to reduce information asymmetry and fall into the "high value" trap for blind investment.