The Research On The Risks And Paths Of Chirna Concept Stocks’ Return

Duo to domestic restrictions on foreign capital investment in the domestic Internet industry,many Chinese Internet companies in order to obtain more financing funds,choose a direct overseas listing,These companies are known as the “ Chinese concept stocks ”.But many of the companies did not reach their expectations in the foreign capital market.As China’s economic growth slows and its industrial structure is in transition.Chinese enterprises continue to be short of foreign professional institutions because of financial information disclosure problems,resulting in the stock of the credit crisis.Addition,Alipay unilaterally terminate the agreement of VIE,revealed that the VIE structure takes stock risk.Leading to a number of listed on overseas China concept stocks’ value was significantly undervalued,the company’s share price had long been at a lower level,poor liquidity,lack of investor attention,unable to obtain financing.In recent years,the domestic capital market environment was improved,especially since 2014 when IPO restarted,Chinese market continued and greatly enhanced the domestic capital market appeal.In addition,for the enterprises with VIE structure whose business mainly in the domestic,being listed on the domestic capital market is not only more conducive to the brand publicity,but also more cognitive and accepted more easily by investors.According to the existing theory of the delisting,enterprise delisting is a combination of costs and benefits,so more and more China concept stocks are seeking delisting after being listed,and going private.Based on the corporate governance theory and the theory of delisting,this article analyzes the reason Qihoo 360 return to the domestic exchanges,including undervalued share price,high cost of listed pays,strategic adjustment,change the listed exchange,etc.Delisting as a capital strategy,is the result of the delisting weigh the costs and benefits of an integrated,consistent with the principles of cost-benefit;This article points out the possible risks Qihoo 360 may face with in the process of going private,demolition of the VIE structure,listing in domestic exchanges.Combined with the practice of Chinese companies return,this article gives three ways listed in the domestic exchanges.Finally,this article put forward its own suggestions for Qihoo 360 in the process of going private,demolition of the VIE structure,listing in domestic exchanges.This article hopes to provide China concept stocks which prepare to return with a reference case,through the case study on Qihoo 360.