| Due to the immature domestic capital market,strict listing access conditions and audit system,many enterprises choose overseas listing in order to meet the financing needs.However,in recent years,influenced by the Sino-US trade war and the short-selling of Chinese stocks,the regulatory environment faced by red-chip companies listed in the United States has been deteriorating.At the same time,the domestic capital market has issued many policies to support the return of red-chip enterprises,prompting them to accelerate their return to the domestic capital market.With the full implementation of the registration system,red-chip enterprises can retain the red-chip structure and choose IPO mode or CDR mode to return according to their own conditions.As a pilot red chip enterprise,China Mobile’s retention structure returns to the main board of Shanghai Stock Exchange in IPO mode,which is of great reference significance.Taking China Mobile as a typical case as the research object,this paper discusses the motivation,path selection and regression effect of its return to A shares,hoping to provide reference for similar red-chip enterprises to return to the market.Firstly,this paper combs the important concepts and theoretical methods of red-chip enterprises’ return to listing,which lays the foundation for the following case analysis.After that,this paper introduces the listing process of China Mobile,the basic situation of returning to A-share listing and the main measures taken.Then it analyzes the reasons for China Mobile’s return to A-share listing and the reasons for its path selection.Then,it explains the comprehensive economic effect after its return to A-share listing from the perspectives of market effect analysis and financial effect analysis.Finally,through the in-depth analysis of the whole case,a conclusion is drawn,and at the same time,some enlightenment and suggestions are put forward for China Mobile,red-chip enterprises and investors respectively.Based on the case study of China Mobile’s return to A-share market,this paper draws the following conclusions: from the perspective of the return motivation,China Mobile’s return to A-share market is not only influenced by external factors such as the exclusion and suppression of red-chip enterprises in the US market,the support of national policies and the maturity of A-share market,but also due to internal factors such as the strategic layout of enterprises.Returning to A-shares can solve the problem of separating capital from customer market and enhance the company’s valuation and influence.It can improve corporate governance and protect the interests of small and medium investors;It can also reshape the industrial chain pattern and form a strategic synergy;It can also stabilize the capital market and improve the liquidity of A shares.In addition,returning to A shares can broaden financing channels and lay out emerging business areas such as 5G and cloud computing.Judging from the regression path,China Mobile’s regression path and plate are the choices that meet its own needs.First of all,choosing to keep the red-chip structure conforms to the national policy requirements,and can also better adapt to China Mobile’s own conditions and corporate strategy.In this regard,red-chip enterprises should choose whether to retain the red-chip structure according to their own conditions;Secondly,choosing the whole IPO listing can better reflect the red chip property of China Mobile.Because of its centralized ownership structure and no VIE structure,it is more suitable to choose IPO mode.In this regard,for a "red chip enterprise" like China Mobile,it may be more suitable to choose IPO mode,and for a "red chip enterprise" like No.9 Company,it may be more suitable to choose CDR mode;Finally,China Mobile’s return to the main board is a decision made after considering many factors such as industry attributes,market liquidity and risk control,which can provide China Mobile with broader development space and better capital market support.In this regard,it may be more suitable to choose the main board for the "red chip enterprise" like China Mobile,and it may be more suitable to choose science and technology innovation board for the "red chip enterprise" like No.9Company.Judging from the return effect,its strategic deployment of returning to A shares has also achieved certain results.In terms of market reaction,after China Mobile returned to the domestic capital market,the company’s share price showed a steady upward trend,and its market value,P/E ratio and P/B ratio increased significantly.In addition,the measures to stabilize the stock price adopted by China Mobile in its return have been effective.China Mobile’s measures to further stabilize the A-share price,such as lock-in placement by strategic investors,adoption of green shoes mechanism,repurchase of Hong Kong stocks and establishment of three-year measures to stabilize the A-share price,are beneficial to the company’s long-term planning and development.In terms of financial effect,most financial indicators of China Mobile have improved,but the increase is relatively small,which may be due to the comprehensive effect of many factors such as the mature development of China Mobile,the saturation of industry scale and the impact of epidemic situation.Moreover,China Mobile returned to A-shares on January 5,2022,and the return time is still short,and the return effect needs time to verify.In terms of market competitiveness,after the listing of China Mobile’s main board,its operating income structure is more perfect,its business grows steadily,and its market scale continues to expand.This successful case gives some enlightenment to similar red-chip enterprises:red-chip enterprises should base themselves on their development strategies and correct their return motives;At the same time,we should grasp the policy opportunity and choose the appropriate listing path and plate according to our own situation;The measures adopted by China Mobile to stabilize the stock price during its return are also worth learning.Through the foregoing analysis,this paper finds that China Mobile has some shortcomings,and accordingly puts forward some suggestions for its development: China Mobile should pay attention to the potential risks in the development process and take various measures to improve its revenue capacity.Finally,some suggestions are put forward for investors: investors should also be rational about the returned red-chip enterprises,make rational valuation according to their long-term development trend,and avoid blindly pursuing and driving up the stock price. |
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