Research On The Plummeting Of The Stock Prices Of Unicorn Companies Listed In Hong Kong

With the rapid development of the Internet and the advent of the new economic era,unicorn enterprises are gradually emerging.Under the background of national policy support for science and technology innovation enterprises and Internet enterprises,a large number of Unicorn enterprises have emerged in China.At present,unicorn enterprises in China have been in the forefront of the world in terms of quality and quantity.In order to better absorb the listed bonus of Unicorn enterprises and attract the return of overseas Unicorn enterprises,various capital markets have issued many preferential policies on the listing of Unicorn enterprises.In March 2018,China Securities Regulatory Commission clearly proposed "immediate report and immediate review" for the IPO of Unicorn enterprises that meet the conditions.Hong Kong stock revised the Listing Rules in April of the same year,and launched the listing system of emerging and innovative industry companies,which allows Unicorn enterprises to go to Hong Kong to list with the structure of "different rights of the same share".Of the 29 Unicorn companies listed in 2018,14 chose Hong Kong stock.From Xiaomi group to Meituan,an Internet giant in the mainland,China Unicorn companies went to Hong Kong in 2018 for financing.However,a large number of Unicorn companies went to Hong Kong one after another,which brought a drop in the stock price.The IPO route of Unicorn companies is an inevitable choice for financing.The huge contrast between before and after the IPO deserves our in-depth study.Based on the efficient market hypothesis,information asymmetry theory and stakeholder theory,this paper uses case study method to analyze the current financing phenomenon of Unicorn enterprises and the stock price after listing in Hong Kong in 2018.First of all,this paper analyzes the overall situation of Unicorn enterprises in China,mainly introduces the development status and listing status of Unicorn enterprises in China,and analyzes the overall situation of Unicorn enterprises listed in Hong Kong from the stock price performance,market reaction and financial situation after listing.Secondly,taking ping an good doctor as an example,it analyzes the performance of its stock price after listing from the market level and the enterprise level,and calculates and analyzes the short-term market response of Ping an good doctor after listing by using the event study method.It believes that the collapse of its stock price is related to the previous overvalued value.At the enterprise level,it mainly analyzes the profitability and related transactions of the enterprise.Finally,from the perspective of market and enterprise,this paper analyzes the main reasons for the sharp fall in the stock price,and concludes that the issue is too high,the valuation bubble is serious,the logic difference between the first and the two tier market valuation,and the mismatch between the profitability and the high valuation of the listed companies will lead to the drop of share price.According to the research conclusion,this paper holds that Unicorn enterprises should pay attention to the construction of their own core capabilities,improve their profitability and quality,and for investors,they need to measure the internal value of enterprises and maintain rational investment.