Research On The Path And Effect Of Giants' Return To A Shares

In recent years,a number of overseas listed Chinese companies have announced their privatization,which has attracted widespread attention from the investment community and academic circles.The privatization of most of China's stock companies did not leave the capital market after this,but chose to return to the domestic market and transfer to the market again.However,this process of regression is not a smooth one.There are few successful cases of regression.This paper selects a giant network with a complete process of first listing and delisting and then listing to conduct a case study,which can not only enrich the relevant theoretical basis,but also provide practical significance for the Chinese stocks to be returned.Firstly,based on the summary of domestic and international research status of the privatization and backdoor listing of China's stocks,this article takes the giants network as the research object,and combines the case analysis method to explore the motivation for the return of giants' privatization.Secondly,it elaborates the path that can be chosen for the regression of Chinese stocks,and compares the advantages and disadvantages of the three methods.Then,in conjunction with the case,we explored the path selection of the Giants' return to the domestic capital market and the company's choice of strategy in the process of regression.Then,using the event research method and financial index analysis method,the market effect and financial effect before and after the giants' network return were studied.Finally,on the basis of the foregoing,we draw inspiration and put forward our own suggestions.The research in this paper shows that:(1)The probability that China's stocks are based on adjusting company strategy and seeking a better space for development is more likely to return to domestic success,and it is beneficial to avoid undervaluation of corporate value and achieving a better financing incentive.While the speculative motives are gradually improved based on the market's supervisory mechanism,the company's probability of success will be low and it will disrupt the securities market.(2)When the giant network was privatized,the strategy of conservatively setting up privatization prices and financing leveraged buyouts was chosen,which improved the probability and efficiency of the company's successful return,shortened the time for privatization,and established a reasonable repurchase price during the regression process.At the same time,choosing the right opportunity for privatization reduces the cost of returning the company to privatization.(3)After the Giants returned to A-shares,the company gained a certain degree of improvement in profitability,short-term debt repayment,and growth ability,and gained good value and performance in the short term.This article through the complete study of the giant network system,to provide practical experience for the regression of the Chinese stocks,to help enrich the relevant domestic theory.