Research On The Path Selection Of China Concept Stocks Returning

The return of China stocks to A-shares has been a hot topic in the domestic capital market in recent years.Since 2015,China concept stocks have chosen to return to the domestic market due to factors such as shorted,undervalued stock prices and high maintenance costs of listed abroad.In order to greet the return more China concept stocks return,a series of reforms have been launched in the A-share market,such as Chinese Depository Receipts,Sci-tech innovation board and GEM registration system,which have cleared the obstacles for the return of Chinese concept stocks.Returning to the domestic capital market has become an important choice for China concept stock enterprises,and it is necessary to think carefully about which path to take for China concept stock enterprises to return.Through comparative analysis of typical regression paths and profound analysis of four typical cases,this paper provides path suggestions for China concept stock enterprises to return to A shares.First of all,through the study of relevant literature and policies,this paper summarizes the following four main paths for China concept shares to return to A shares: Initial Public Offering and backdoor listing under the traditional path;under the innovation path,such as CDR,Sci-tech Innovation Board,GEM IPO,etc.,introducing each path and summarizing their advantages and disadvantages.Secondly,the models and experiences of the successful return of China concept shares to A-shares are diverse,and a single path is not suitable for all enterprises.This paper selects four typical cases that can represent the main regression paths,analyzes the motivation and the regression process of the four companies,and analyzes the market reaction and financial performance after the regression.The study found that the four companies have successfully returned to A-shares through their chosen return path,and the regression effect was good.Finally,by comprehensively comparing the differences among the four companies and further analyzing the differences among the China concept stocks enterprises that choose different regression paths,this paper makes the conclusions: The China concept stocks enterprises that choose different paths have great differences in the aspects of privatization and delisting,profit status,ownership structure and policy environment.This paper proposes the following countermeasures based on the selection of the return path of Chinese stocks based on the differences of companies: first,privatization and delisting + choosing the relisting path,second,no privatization and delisting + issuance of China Depository Receipts.When choosing the re-listing path,firstly,choose the listing path according to the difference in profitability status and the difference in equity structure,and then choose the listing segment that is compatible with the company.Traditional industries give priority to the traditional path,while new economy companies give preference to innovative paths.There are more options available to China concept enterprises that have completed privatization and delisting,such as more options for profitable companies,especially those with excellent profitability,can have more options;the equity structure is decentralized and clearly selects the main board IPO,and the equity structure is centralized and selects backdoor listing;unprofitable enterprises can only choose the IPO of the Sci-tech Innovation Board.Enterprises that have not completed privatization and delisting are preferred to issue CDR.In addition,the risks brought by the change of policy environment should be considered and the path to avoid risks should be selected.In short,when China concept stocks are ready to return to the A-share market,they should consider various factors comprehensively to determine the best regression path.