A Study On The China Concept Stock Privatization And Listing

With the deepening of global economic integration and the integration of the world financial market,many Chinese enterprises choose to go public overseas.Compared with the domestic market,the requirements for overseas listing are relatively relaxed,and corporate reputation can be expanded.Therefore,the overseas capital market attracts a large number of enterprises in China,which are usually unable to be listed in China due to their shareholding structure or potential development prospects,but their current earnings are not good and they cannot wait for the complicated approval procedures in China.Chinese companies to list abroad began in the 1990 s,on October 9th,1992,brilliance auto became China's first overseas listed companies listed on the nyse,the massive influx of Chinese enterprises overseas capital markets in recent years,after all,the enterprise to get listed overseas markets has become A successful business operation,according to the statistics from 2007 to 2018,A listed company in Hong Kong and the United States more than 950,are in the same period 43% of the number of a-share listed companies in China.However,while A large number of enterprises pursue overseas listing,since 2012,A large number of Chinese enterprises have begun to go private,hoping to exit the overseas market and seek opportunities to return to the a-share market.As foreign capital market mainstream-Internet companies,with originally expected to join the foreign capital market,but because the malicious shorting of overseas institutions and foreign investors to the domestic Internet enterprise business model and management concept,affecting the estimate and financing of the enterprise,has restricted the development of,have to have to return to the domestic capital market.The company QIHOO 360 selected in this paper is a typical case that the valuation fails to meet the expectation because it is maliciously shorted by foreign institutions due to dissatisfaction,thus returning to China.This paper first introduces the research background and significance of this paper and the literature review at home and abroad,and then introduces the privatization process of Chinese concept stocks and the VIE structure,which is the biggest difference between Chinese concept stocks and domestic listed companies.In accordance with the time line is introduced on the basis of these through QIHOO 360 privatisation delisting process and backdoor listing two process analysis,reveals the motives,QIHOO 360 privatisation how to disassemble the VIE structure,need to pay attention to during the privatization risk,choose the cause of the backdoor listings and why choose JIANGNANJIAJIE as the cause of the shell company.After the successful listing of QIHOO 360,the possible risk points of QIHOO 360 in the whole process and the changes of QIHOO 360's financial status reflected by financial indicators after the backdoor listing are analyzed.Finally,this paper tries to use the real case of QIHOO 360 as a reference for other Chinese companies trying to return to China through privatization,and also puts forward relevant Suggestions for Chinese regulators.