Analysis On The Motivation Of Qihoo 360 From The United States

As more and more Chinese companies choose to list on the overseas capital market,the development of Chinese shares has attracted more attention.Qihoo 360 as the leading enterprises in the country's main Internet security company,the delisting process cause more attention,so regard the delisting process as the research object,By means of financial ratio analysis,chart analysis,comparative analysis and methods of enterprise valuation models,from qihoo 360 of the company's internal and external financial situation analysis and the external capital market environment is the basic reason of delisting.The paper is based on the domestic and foreign literatures on the delisting of Chinese shares,it studies the whole process of Qihoo 360 delisting from the perspective of its internal actual situation and external capital environment to analyze the root cause of delisting.First,the whole delisting process of Qihoo 360 is introduced.From the internal environment of the enterprise,the paper use EVA valuation model to conduct value analysis and financial situation analysis of Qihoo 360 company,it found that Qihoo 360 company needs more cash based on its future strategic adjustment and new field research and development.However,its future cash flow is slow down,which cannot meet its future strategic plans and system restructuring.And then from the external environment of the enterprise,use charts to compare indicators,the difference between the performance of domestic enterprises and Chinese shares in the US capital market and the relevant data of domestic a-share market are compared and analyzed.At the same time,it compares the PE ratio and of enterprises in the same industry at home and abroad.Qihoo 360 was valued at the average PE ratio of Shanghai and shenzhen by using PE valuation method.And analyzed the limits of Qihoo 360 company business in the United States,differences in perception between China and the United States,differences in listing maintenance costs,and China's policy of encouraging qihoo 360 to return to China for development and domestic advantages.The conclusion drawn from the internal situation and external situation study of Qihoo360 is the fundamental reason for the withdrawal of Qihoo 360 is the difference between the Chinese and American market.It creates a valuation gap between China and the United States which allows domestic capital markets to give Qihoo 360 a higher valuation.In addition,thenational security strategy,favorable policies,limited business development in the US market and cultural differences are all the reasons for Qihoo 360's delisting.Moreover,the analysis of the delisting process of Qihoo 360,a representative enterprise,provides some references for other Chinese stocks.