Study On The Motivation,Path And Effect Of China-Concept-Stocks Return To H Shares By Secondary-Lisiting

In the 1990 s,many Chinese enterprises went public in the United States due to various factors such as financing needs and easily listing conditions in the American stock market.However,since 2010,American stock short-sellers have frequently shorted Chinese concept stock companies by taking advantage of information asymmetry or financial problems of some Chinese concept stock companies,resulting in a sharp drop in the share prices of relevant companies.Moreover,in recent years,Holding Foreign Companies Accountable Act(HFCAA)makes American capital market regulation become stricter.On the other hand,listing rules related to the domestic capital market are constantly optimized.Therefore,some China-concept-shares choose to return to the domestic capital market,which has become the focus of the capital market at present.In this context,this paper analyzes the motivation,path and effect of the regression of China-concept-shares as a starting point,which has important theoretical and practical significance for the rational decision-making of China-concept-shares enterprises,investors and policy makers who plan to return to the domestic capital market.Through reading a large number of literature,this paper sorted out the contents of the literature and summarized the relevant key points as theoretical basis and basic support.By using case studies and comparative analysis methods,this paper selected Net Ease Group,a typical information technology enterprise in China,to analyze the external and internal causes of this regression wave.Secondly,the paper analyzes the reasons why the regression China-concept-shares choose Hong Kong as the listing place,and mainly analyzes and compares the advantages of Hong Kong market compared with the mainland market.Then analyze and compare the current China-concept-shares enterprises to Hong Kong capital market three paths.There are three ways to return to Hong Kong stock market: privatization and delisting re-listing,dual primary listing and secondary listing,and the advantages and disadvantages of each are analyzed and compared.Then,the event study method takes [-20,20] as the event window period to analyze the short-term market effect of Net Ease.Through the research on Net Ease’s secondary listing in Hong Kong,it is found that the external motivation of Net Ease’s secondary listing in Hong Kong is the revision of Listing Rules in Hong Kong in 2018 and the introduction of Foreign Company Accountability Act in the United States.The internal motivation is mainly the financing needs of enterprises.In terms of route selection,the secondary listing of Hong Kong stocks has the advantages of low cost,short time and simple process,and is the optimal path for Net Ease to disperse the forced delisting risks that may be brought about by the Foreign Company Accountability Act.For Net Ease’s secondary listing in Hong Kong,the short-term market reaction is more positive.The impact of this secondary listing in Hong Kong on non-financial indicators is to disperse risks in the single market,diversify financing channels,and be close to the local market is conducive to strategic layout.Finally,according to the case study,the conclusion is summarized,and the corresponding enlightenment and suggestions are put forward from the three perspectives of Chinese concept stock enterprises,investors and policy makers.On the one hand,it helps them make rational decisions.On the other hand,relevant case studies have been further expanded.