A Research On The Market Valuation Discrepancy And China Concept Stocks Returning

Around 2010,there was a rush to return to China for Chinese companies listed in the United States.According to the data provided by Oriental Wealth,there were 260 Chinese companies listed in the United States by 2018,while 258 Chinese companies delisted from the United States.In other words,nearly half of Chinese companies listed in the United States had already delisted.Some of them have been listed in China instead of in the United States,and have experienced rapid growth of market value after listing,which was once higher than the market value in the United States.In view of this phenomenon,domestic scholars have given some explanations,such as undervaluation of market value,short-selling of institutions,profit-seeking of capital and so on.It is generally believed that the arbitrage space formed by undervaluation in the US market and the huge difference in valuation between the Chinese and American capital markets is the main reason for Chinese stock companies to withdraw from the US market and seek listing in China.This paper chooses Qihu 360,the largest Internet company in China,which has returned to China for listing so far as a case study.Qihu 360 put forward the privatization bill in 2015,formally delisted from the United States in 2016,and Jiangnan Jiajie,a shell-backed listed company,listed on A-share in 2017,completed the conversion of listing location in less than two years.After listing,the market value of the company exceeded 400 billion yuan in a short period of time.After that,the market value of the company began to decline continuously,and finally stabilized at about 150 billion yuan.Although the market value of Qihu 360 has shrunk dramatically,it is still far higher than that of Qihu 360 in the United States.However,through comparative analysis,we can find that the management and financial situation of Qihu 360 has not changed significantly before and after its return.That is to say,the capital markets of China and the United States once again give a huge difference in valuation of the same company.This paper consists of six parts.The first part is the introduction.This part mainly introduces the background and significance of the topic,collates the relevant research achievements of domestic and foreign scholars and makes a brief comment,briefly introduces the writing framework and research methods of this article,and summarizes the innovation and shortcomings of this article.The second part is the related concepts and theoretical basis involved in this paper.The third part is the research basis of the return of China-US capital market and accounting system,as well as the introduction of the development process of China-US capital market and accounting system.The fourth part is a case study.Firstly,this part briefly introduces the company,then illustrates the company's business status with specific data,describes the regression process of Qihu 360 according to the event process,based on the existing academic achievements,and combines the specific situation of Qihu 360 to analyze its regression motivation,finally,from the perspective of accounting system,finance and impact.The results of the company's actions.The fifth part is the difference analysis of market valuation.In this part,the discount method of entity free cash flow is used.The financial data and market data before and after Qihu 360 regression are used to evaluate the difference of market valuation,and possible explanations are given for the difference of valuation.The sixth part is conclusions and suggestions.Through the analysis of this paper,it is found that the market share of Qihu 360 has stabilized.After excluding the influence of backdoor trading,the fluctuation of financial indicators is weak,but there are huge differences in the company's market value before and after returning to China.The valuation results obtained by using the data before and after returning to China are also significantly different.In view of the above differences,this paper gives four explanations: information asymmetry,investor structure difference,target company scarcity and institutional environment change.