Research On Backdoor Listing Of Delisted U.S.Listed Chinese Firms

Since 2010,the massive short of overseas short agency caused delisting and return of U.S.listed Chinese firms.There were 37 U.S.listed Chinese firms received privatization offer after 2014.Among them,9 have completed the privatization agreement or merger agreement and 4 have completed the delisting.What is the reason for these companies have chosen to delist and return to A share market?This paper takes the delisting and backdoor listing of Giant Interactive as an example,and focuses on reasons,paths and effect for China concept stocks which go private in the US and backdoor-list in China.Meanwhile,the analysis in this paper will be helpful for the firms completing privatization to select the return path,attracting high quality overseas listed companies to return.Research results show that underestimate value,financial problems,short system and positive Chinese capital market are the main reasons for the return of U.S.Listed Chinese Firms.Compared to the IPO,the new three board and other return path,backdoor listing is the most suitable way for the current U.S.Listed Chinese Firms.Through the backdoor listing,U.S.Listed Chinese Firms can get higher valuation and better financing capabilities than the U.S.market,and also get more attention at the same time to make profits to shareholders of both parties.