China Concept Stocks Return To Valuation Research

In recent years,the wave of our Chinese companies eager to liste abroad has faded,instead,it is the Chinese concept stocks returned.Because the oversea market isn’t as smooth as we imagine,face to the strange company business and management,overseas investors are extremely cautious,this phenomenon lead to some China concept stock company can’t reach the ideal level even underestimation.at the same time gave rise to the financing difficulties,trust crisis and other issues,lead to China stocks of companies explore opportunity of back to China stock.Compared with the domestic market,the A share market began to active in 2015,and the valuation of enterprises was further increase.Regulators also issued some policies to encourage these oversea stocks return and removed many policy obstacles.According to some data statistics we know,only 2 of the13 Chinese stock markets in the US stock market are engaged in game development.The reason is not difficult to find,different valuation of domestic shares and abroad is the key,and then made these back.The valuation difference between enterprises in China’s market and overseas stock market,it shows that the ways of value assessment between two markets are different as well.By studying the valuation,analysis the valuation difference,valuation arbitrage and growth of valuation about the Prefect World grow by the Perfect Global return to A shares in this article,and then analysis the whole situation so that provide reference for other companies.This article is divided into six chapters.Firstly,summarizes the the research background.Based on the academic achievements of former scholars,lead to central theme.Secondly,this part elaborates the related principles,methods and influencing factors of enterprise value evaluation,to provide the theoretical basis for the following.In addition,analyzes the current situation,motivation,ways and influence factors of stock returns,that is the reasonable guarantee for the further research.Next,by valuing the Perfect World back to A,we use the P / E method、P / B method and Free cash flow valuation method by CAPM model to value..We find out that there remain some value differences in China and abroad,theory is different from reality as well,and may be overvalued.Then analyzes the reasons for the under valuation outside and the high valuation inside about the Perfect World.Finally,the Perfect World valuation arbitrage and the future growth has been further studied.In summary this article comes to three conclusions:first of all,value is undervalued for a long time is the main reason among many factors that cause the regression of Chineseconcept stock;Second,the aspects lead to valuation different in domestic and abroad,including value management,valuation logic and evaluation method.Last,stock value is reflection of enterprise intrinsic valuation,the valuation arbitrage may be just the overdraft performance.So if the enterprises want to achieve their own values and make its continuous growth,must consolidate their value inside and enhance the performance.