Research On The Motivation And Economic Consequences Of Privatization Of China Concept Stocks

Due to the high threshold of listing in China’s capital market,many high-quality enterprises have chosen to list overseas in order to expand their financing channels.However,in recent years,many Chinese companies listed on the US stock market have been privatized.They aimed to returned to A-shares,which has triggered a “return boom”.The market value is underestimated and the cost of listing in the US is high.Nowadays,the environment of the US capital market is not suitable for long-term development in China.In contrast,domestic Internet information resources in the A-share market are scarce,and investors all welcomed to the return of concept stocks.Continued to rise,the government is also stepping up efforts to guide the return of quality enterprises.In March 2018,the introduction of the issue of domestically issued stocks or CDR policies for innovative companies provided a new path for the return of China Stocks,March 2019.The launch of the Science and Technology also provides a docking platform for the return of the China Stock Exchange.For the attraction of the domestic capital market and a series of favorable policies issued by the state,Chinese stocks’ return will become a trend in the future.The return of the Chinese stock companies is conducive to the development of the company itself,and it is injected into the capital market of China.As the leading enterprise in the domestic Internet security industry,Qihoo 360 is also the largest enterprise in the return of the current stocks,and the process of returning has also received much attention.This paper takes the Qihoo 360 privatization regression process as the research object.Firstly,through literature research method,it summarizes the related concepts of privatization of listed companies,privatization motivation and economic result,and lays a theoretical foundation for case analysis.Secondly,delisting and “re-listing” of Qihoo 360 privatization are comprehensively introduced,and the economic consequences of delisting incentives and privatization are analyzed and summarized.The conclusion is that Qihoo 360’s privatization delisting is not only forced to delist from foreign short-selling institutions,but also because of the undervalued market value,strict supervision of overseas markets,and active retreat for future strategic considerations.The city,and the successful return of Qihoo 360 has brought positive influence to the company itself.By analyzing the reasons for the delisting of the company’s privatization and the economic consequences,the purpose is to help China’s capital market to deepen its understanding of the privatization delisting.