Research On Smic’s Return Path And Economic Consequences Under The Background Of Registration System

In the past,due to the low activity of the domestic capital market and the high threshold for listing,many companies had to go public in the overseas capital market for development.Under the multiple backgrounds of China’s continuous capital market reform,the pilot registration system,the promulgation of the "Holding Foreign Companies Accountable Act(HFCAA)" and the international trade war,a new round return of Chinese concept shares will appear in China.In 2019,the registration system was officially implemented.Under this background,the path for the return of Chinese concept stocks has been updated,the listing policy of red-chip enterprises has been relaxed,and the listing efficiency has been improved.At present,the most of technology information and emerging companies in China are listed in the United States and Chinese Hong Kong.Such companies have the characteristics of great investment and long return period,which is difficult to meet the listing standards under the approval system in the past.The introduction of a series of policies for the registration system pave the way for such Chinese stock companies to return.With the increasing importance of intelligence and informatization in economic development,the semiconductor industry has become a key development industry in China.The implementation of the registration system reform has promoted in attracting high-quality companies in the semiconductor industry chain to return to domestic market and guided domestic funds to help the development of these companies.This article takes SMIC,the first "A+H" red-chip leader on the Sci-Tech Innovation Board return in 2020,as the object,and uses case study,literature study,comparative analysis and events study to analyze SMIC’s return drivers,paths,and economic effects of return.First of all,the paper reviews the domestic and foreign research on the privatization and delisting of enterprises and the return of Chinese concept stocks,expounds the significance of the research,introduces the theoretical basis of the research,defines the concepts involved,and provides a theoretical basis for the following article.Secondly,the paper introduces SMIC’s enterprise,industry situation and its regression process,to pave the way for the analysis of the following regression motivation,path selection and economic effect.This paper analyzes the reasons why SMIC chooses to withdraw from the US capital market and return to A shares from the perspective of internal and external factors.Thirdly,by comparing the old and new return paths under the background of the registration system,the advantages and risks of listing on the Science and Technology Innovation Board are analyzed,and the reasons why SMIC chooses this path to return to A shares are studied in combination with the company’s own situation.Finally,the economic effects brought by SMIC’s return are analyzed from three aspects: market response,financial effects and innovation performance.Through a study of the case of SMIC’s return to the A-share market using the new path of the registration system,this paper draws the following conclusions:(1)the return path of SMIC’s shares in the context of the registration system has been broadened and the risk of dismantling the red chip structure has been avoided,which will be an important driver for SMIC’s return to the A-share market;(2)compared with the approved system,the return to the A-share market using the registration system can now save a lot of time and capital costs for companies;((3)SMIC has chosen an appropriate return path and has achieved its listing objective after the return,with positive short-term market response and enhanced financial and innovation performance.Through the case study,this paper puts forward insights and suggestions from the perspectives of enterprises,regulators and investors: firstly,enterprises should correct their motivation to return,make use of good policies to choose the return path,and focus on the development of their main business after return;secondly,while promoting the multi-level development of China’s capital market,the state and regulators should also strengthen the management and supervision of the return of Chinese stocks;thirdly,investors should not follow the trend to make investments.Professional investors should conduct objective analysis and guidance.