| With the development of global integration and the many restrictions on the new listed companies in the A-share market,Some companies with very good growth have gone overseas for listing financing.Out of the prospect of China's future economic prospects,the stock of Chinese companies that have successfully listed in overseas capital markets is called China concept stock.Since Sina's landing in the US market in 2000,China's stock companies have experienced a crisis of confidence that has grown from rapid development to being sought after,followed by frequent scandals,started to go private and then list on the domestic capital market.In 2015,up to 32 listed companies in the US announced that they should be privatized so as to return to the domestic capital market and get higher valuations,better liquidity and financing functions.In April 2016,the Giant Interactive Group was approved by the China Securities Regulatory Commission for approval and became the first batch of mid-share companies to complete privatization and achieve A-share listing.On the basis of the existing research at home and abroad,this paper takes the Giant Interactive Group to return to the domestic capital market as the research target.Combing the privatization of the Giant Interactive Group,dismantling the VIE Architecture,the whole process of the shell listing.Analysis the motives,potential risks,impacts of the privatization and re-listing behavior,and key factors for success.The reasons for the return of Giant Interactive Group includes the low stock price and low valuation,while the domestic market has relatively high valuation for Internet companies in recent years,the difference between Chinese and American investors leads to the failure of the diversification strategy,and the need for enterprises to make strategic adjustments and better layout of the mobile game market.In the whole process of the return,the Giant Interactive Group faced financial risk,legal risk,backdoor listing risk,policy regulation risk,and the expected risk of market valuation.After the Giant Interactive Group returned to the domestic capital market,the company's market performance,solvency,and growth ability have significantly improved.But the role in improving the profitability of the company is limited.At the same time,it has a positive impact on the company's investment and financing decisions and stakeholders.To be able to return to the domestic capital market in a short period of time,mainly depends on the company's return is fully prepared,abundant privatization funds,the right time to return,and reasonable listing methods and shell resource options.Finally,combined with the Giant Interactive Group case experience,some enlightenment is given to the return of other China concept stocks and the regulatory layer.Through the study of this case,it is expected to provide more practical support and theoretical reference for the return of China concept stock. |
