Research On The Motivation And Effect Of JD’s Secongdary Listing In Hong Kong

In the past,due to the restrictions of China’s capital market laws,many Internet and science and technology enterprises chose to go public and raise capital through the VIE structure.With its mature market system and high reputation,the American capital market became the first choice for many Chinese enterprises to go public overseas.However,in recent years,the aggravation of sino-US trade friction,Chinese concept stocks in the US market under strict supervision and continued to encounter malicious short-selling,making the situation of Chinese concept stocks overseas more difficult.At this time,the Hong Kong Stock Exchange revised the new listing rules and lowered the listing threshold,prompting a large number of Chinese concept stock enterprises to go to Hong Kong for secondary listing.As an Internet leading enterprise,JD’s secondary listing in Hong Kong is representative and typical,and its successful return has certain reference significance.This thesis takes the case of JD’s secondary listing in Hong Kong as the research object.Firstly,literature research method is used to sort out the research results of scholars as the supporting basis of this thesis,and relevant concepts and theories are introduced.Then,the current regression situation of Chinese concept stocks is sorted out and the regression path is compared and analyzed.Through sorting out,the current regression path of Chinese concept stocks mainly includes privatization,delisting and re-listing,secondary listing and dual listing.The re-listing can choose IPO overall listing,backdoor listing,split listing and merger listing.Each method has its own advantages and disadvantages.Then the listing process of JD Group is sorted out in chronological order,and the risks and effects of JD’s return are studied from the perspective of motivation.In terms of the reason of return,JD’s return is the result of both internal and external effects.In terms of regression effect,this thesis uses the event study method to study the short-term market reaction of JD’s return.It finds that JD has gained strong support from investors after its secondary listing,and its market value has greatly increased,thus achieving a positive market reaction.Through the analysis of the long-term performance of JD by financial index method and comparable company law,it is found JD’s solvency and operational capacity have been strengthened,while its profitability has declined,but its growth capacity is optimistic and has good development potential;There are also positive non-financial effects of JD’s return.Finally,based on this case analysis,it is suggested that when selecting the return location and return path of the concept stock enterprises,they should fully consider their own structural characteristics,development status and the overall strategic objectives of the company to avoid risks.Regulators should pay attention to policy guidance,and investors should pay attention to the avoidance of investment risks.