Research On Performance Evaluation And Risk Of Return Of China Concept Stocks Under VIE Model

With the US muddy waters company shorting Luckin in 2020,Chinese concept stocks suffered a serious crisis of confidence,and by the time the US Congress passed the Foreign Companies Accountability Act,the audit papers of listed companies going to the US need to be provided to Public Company Accounting Oversight Board.With the different laws and regulatory requirements of the two places,the listing of Chinese concept stocks in the United States will bring great uncertainty.At the same time,China’s capital market is constantly improving,the attractiveness of A-shares to the return of Chinese concept stock enterprises is increasing,and the issuance of depository receipts to return to A-share listing is an effective measure to solve the laws and supervision of the two places.How to return A-shares through the issuance of depository receipts has become a hot issue for Chinese concept stock enterprises.In addition,the performance effect and potential risks faced after returning to A-shares are the top priorities of Chinese concept stock enterprises,and red-chip enterprises with VIE structure themselves face many uncertainties,and the business process will also cause certain risks,coupled with insufficient research on the return of enterprises to the existing theory under the VIE model.In this context,a case study on the listing of depository receipts issued by Ninebot Limited can not only provide experience reference for subsequent domestic listing of red-chip enterprises,but also provide policy reference for the innovation of the national regulatory system for the VIE model.This paper takes the listing of Ninebot Limited of the first CDR on the Science and Technology Innovation Board as an example to conduct a preliminary discussion on the background,motivation and process of the listing of Ninebot Limited.It verifies that the groundbreaking regression method through the issuance of depository receipts is different from the previous regression method selection,which can avoid some potential risks and can be regressed efficiently.This paper further constructs financial performance indicators and risk indicators,conducts a comparative study on the performance of Ninebot Limited before and after its return to listing from the perspectives of financial performance and non-financial performance,combines the entropy value method and sensitivity analysis to comprehensively analyze the above constructed indicators,and finally identifies the financial risks and corporate bankruptcy risks faced by Ninebot Limited after its return,and identifies the potential risks faced by Ninebot Limited in the VIE framework because of its domestic listing under the VIE model.Based on the performance evaluation and risk research of Ninebot Limited,this paper also puts forward suggestions for the domestic listing of depository receipts issued by red-chip enterprises: enterprises should improve their debt structure,establish a risk early warning model in advance,establish and improve the company’s internal management system,and avoid exchange and tax risks in a timely manner,while the state should strengthen the supervision of the VIE model.