Analysis On The Return Path Of Chinese Concept Stocks

Since the 1990 s,Chinese enterprises began to go abroad to the overseas capital market listing and financing.Chinese enterprises have been listed overseas for more than 20 years,but since 2011,the overseas Chinese concept stocks sector has been in a downturn,so many Chinese concept stocks have chosen the path of privatization and delisting.In 2015,Li Keqiang,then premier of the state council,in his speech on "mass entrepreneurship and innovation" made it clear that institutional barriers and unreasonable restrictions on industry access for start-ups with special shareholding structure to be listed in China should be solved.Along with the policy reform and the spring breeze of a-shares market rising in the first half of 2015,many Chinese concept stocks plan to return to a-shares market through backdoor.The hot trend of Chinese concept stocks returning makes the domestic and foreign market arbitrage space huge and also further encourages the speculation of domestic shell resources.In 2016,China securities regulatory commission(CSRC)released the draft for soliciting opinions on the management measures of major asset reorganization of listed companies,which is also known as "the most stringent new regulation on backdoor lending in history".Under such circumstances,Chinese concept stocks choose to return for what reason? Since the Chinese concept stock frequent regression,is mostly USES the backdoor regression way to carry on the regression,but when the backdoor method is limited,the new path appears,and what is the difference between the new path and other paths,is suitable for what type of enterprise? In view of this problem,this paper selects the first stock that returns to China’s capital market through IPO in the way of "one split three",and obtains the answer to the above questions through the analysis and comparison of this case.The research idea of this paper is to firstly summarize the relevant concepts and the current research situation of Chinese concept stocks by literature research method,and form the theoretical basis of this paper.Secondly,the case study method is applied to analyze the motivation of returning to China’s capital market from the perspective of enterprise micro-level.Next,analyze the innovation path of "one part and three parts" of Wuxi pharmaceutical co.,LTD by comparison,and solve the problem of why the company should be separated by comparing the first part and then listing and the whole IPO listing.By comparing IPO listing and backdoor listing,this paper answers the question of what kind of enterprises are suitable for the two methods respectively.Through comparative analysis and simple analysis of the effect of the "one to three" path,the advantages,limitations and applicability of the innovation path are summarized.Based on the above comparative analysis of the case company and other enterprises,the author puts forward corresponding Suggestions for the regression of Chinese concept stocks and puts forward countermeasures for the regulatory authorities according to the status quo of the regression of Chinese concept stocks.Finally,combined with the latest relevant policies,the development of the phenomenon of Chinese concept stocks returning to China’s capital market is prospected,and the feasibility of "one split three" under the new policy in the future is predicted.