An Analysis Of The Behavior Of Chinese Concept Stocks Return To The A Stock Market And Its Influence

Since the reform and opening up,some chinese companies have chosen to list in overseas capital markets in order to break market barriers in overseas markets,improve corporate governance through overseas systems,and increase their awareness and influence.These overseas listed companies are called chinese concept stocks.From the whole process of overseas listing of chinese concept stocks,some chinese concept stocks have decided to return to the A-share market due to the seriously underestimated corporate value,high operating and maintenance costs,and adjustment of the company's strategy.At the same time,the A-share market's hot trading and the active domestic capital market policy provide an excellent market opportunity for the return of chinese concept stocks.The process of returning to the A-share market can be roughly divided into three steps,privatization delisting,demolishing the VIE structure and re-listing in chinese stock market.At this stage of re-listing,chinese concept stocks can choose applying for IPO,backdoor listing,or listing of the New Third Board.Considering chinese multi-level capital market structure,chinese concept stocks has multiple paths to re-list in A-share market.Different paths have their own advantages and disadvantages,IPO has chinese concept stocks wait for a long time,but IPO on the mainboard has incomparable advantages in terms of financing ability and propaganda effect.Backdoor listing takes a short time,but the risk of restructuring negotiations is high.The cost of listing in New Third Board is low,but the equity transaction is not active,the chinese concept stocks should choose the appropriate regression path according to their own circumstances.This paper analyses the behavior of the Perfect World returning to A-shares and its influence.Through the case study of the ?return motivation-regression path-return influence?,the research shows that the stock price of the Perfect World before the privatization plan has broken the issue price,the stock price has been low for a long time,the value of the company has been greatly underestimated,and seeking value repair is a major cause of the Perfect World return.The model of Perfect World step-by-step return will increase the planning space.At the same time,it also isolates the obstacles to the listing process which privatization delisting and dismantling the VIE structure may cause.After the Perfect World resumed trading,its share rose by the daily limit for the sixth day,the cumulative excess return rate far exceeds the general mergers and acquisitions,and Perfect World is favored by investors in the market.With the development of economic globalization,companies with high growth potential gradually become the listed resources for major exchanges.In the future,chinese capital market will open up to embrace the return of chinese concept stocks.This paper proposes three inspirations: First,chinese concept stocks should select appropriate return path according to the characteristics of the company and the market conditions,the path of returning in the future will be more diversified.Second,investors should be rational about the return of chinese stocks.In the future,overseas listings and returning to A shares will become the new normal of the capital market.Investors cannot regard returning to the A-share market as an investment standard.Third,the regulatory layer should improve the market service and regulation,regulators can increase regulatory flexibility through classified regulation.