Research On The Motivation,path And Risk Consequences Of Unicorn CDR’s Return To A-shares

In the past two decades,the capital market in our country has problems of capital supply outstripping demand and restrictions on foreign investment.As a result,a large number of unicorn companies have chosen to list overseas to meet their financial needs for growth.In recent years,with the development and perfection of china’s capital market,our country has begun economic transformation,the traditional industries are declining trend,start-ups are gaining unprecedented popularity and high valuations,attracting the attention of overseas registered unicorn companies,seeking opportunities to return to the domestic market.Sixteen unicorns have returned between 2016 and 2021 in various forms such as IPOs,spin-offs,backdoor listings and CDRs,focusing on consumer,IT,healthcare and more.Nine’s return is particularly notable.This paper combines theoretical analysis and case study to study the motivation and possible risks of Company Nine’s return to the A-share market,and draws the following conclusions: 1.(2)Company No.9 chose to issue CDR back to A for listing is more convenient and in line with its business development strategy;(3)The risks faced by Company Nine in this return include major policy risks,warrant protection risks,and market risks.Based on the related risk analysis,this paper puts forward some specific suggestions to regulate the return of unicorn enterprises to A-shares from three levels.The main contribution of this paper is: First,this paper analyzes the motivation,path and risks of CDR return to A-share in the case of the first typical case of CDR return to A-share in China,unicorn company No.9.Enriching the case study of CDR return to A shares in unicorn enterprises provides experience for future companies who wish to choose this route.Secondly,based on the analysis of company no.9,this paper brings out some thoughts on the topic of unicorn return.In the background of helping unicorn companies choose to return to the stock,this paper not only broadens the investment channels and optimizes the investment portfolio,but also helps the regulatory agencies to put forward regulatory policies,improve the regulatory system and improve the regulatory effectiveness.