Case Analysis On The SouFun Return Of The A Stock Market

Since the 1990 s,the domestic capital market was unable to meet the financing needs of corporations and the domestic government had restrictions on foreign investment,the company began to seek listing financing in foreign capital markets,including the United States,Hong Kong and other places.In twenty years,there had been five upsurges of overseas listing.However,after 2010,the upsurge of going public in the United States did not continue,because companies listed in the United States have been shorted by professional short institutions,and foreign investors had crisis of confidence,and the supervision of the US capital market was extremely strict.For various reasons,some enterprises had to withdraw from the market in the United States and began to return to the domestic capital market.In the short period of five years from 2011-2015,the number of the returning of China concept stocks was more than ten times that of all previous years.Some companies,such as Storm Technology,Focus Media,and Giant Network,took the lead in completing the process of returning from the overseas capital market to the domestic capital market,and provided important references for other companies.Since then,most of the Chinese stocks have chosen the same way of returning,that is,delisting in foreign capital markets through privatization,dismantling agreement control,and finally listing in the domestic market.Although the experience of the previous companies makes this method relatively smooth,it will inevitably take a long time.This waiting period may allow companies to miss development opportunities.In 2015,Miles issued an announcement and announced the news of SouFun's return.Based on the different characteristics of the business and the specific conditions of the Chinese and US capital market,SouFun chose to split the advertising business and financial business into two businesses,into a shell company,in this way to achieve the listing of the capital market.This innovative model undoubtedly sparked the market's attention.SouFun's innovation model is a major leap forward for the return of China concept stocks.Although finally the solution was terminated,the contribution of this attempt was far greater than the value of the return itself.In this paper,SouFun returns to A stock market as a case,analyzes the reasons for the listing of SouFun to the United States,the reasons for returning to the domestic capital market,the plan for the return,and the implications of this failure case for Chinese private companies who intend to return.