On Path And Performance Of Chinese Concept Stocks Returning To Domestic Capital Market

In the early period of the development of my country’s capital market,due to the high threshold for IPO listing,many emerging companies were unable to meet the listing conditions.Due to meet the financing demands of their companies,these companies have tended to list in overseas markets.In the last few years,my country’s capital market has gradually achieved steady development.The government has also introduced a lot of policies to encourage the development of emerging companies.Market investors have also shown their optimism and pursuit of emerging companies.At this time,companies listed overseas are facing crises such as underestimated corporate value and large-scale short selling.Therefore,plenty of Chinese concept stock companies choose to back to the home market for development.The return of privatization of Chinese concept stocks has also become a hot topic.This article selects Wu Xi App Tec as the research object,and conducts research on the motivation,path and performance of its privatization return,and provides theoretical and practical references for the return of other Chinese concept stock companies.This paper adopts a method that associates document and case study.Through the analysis of Wu Xi App Tec’s path to return,the following conclusions were obtained: First,the main motivation for Wu Xi App Tec’s return to privatization was low corporate valuation,corporate strategic development needs,excessive listing maintenance costs,and domestic policy support;Then,combined with the basic situation of Wu Xi App Tec,the current three main regression paths were compared and analyzed,and the advantages of Wu Xi App Tec’s "split +IPO" regression path were studied,and the results were obtained.The advantages of this return method are: the spin-off reduces the risk of underestimation of corporate value and broadens the company’s financing channels.After the spin-off,Hequan Pharmaceutical,Wu Xi Biologics and Wu Xi App Tec can focus more on their core businesses.And strengthened the equity incentives for subsidiary management.Finally,the market performance before and after the return of Wu Xi App Tec,including market capitalization,price-earnings ratio and stock price,as well as financial performance including profitability,operating capacity,debt solvency and development capacity,were compared and analyzed.The stock prices have risen substantially,and the business performance has been good,indicating that the company’s performance after its return is worthy of recognition.The article concludes with a summary of the case and believes that Wu Xi App Tec’s return path is groundbreaking,and it provides reference and new ideas for the return path selection of other Chinese concept stock companies,which is of great research value.In addition,it also has a certain enlightening effect on other Chinese concept stock companies and regulatory agencies.