Analysis On The Regression Path And Economic Backward-looking Of The Split Of China-Related Stocks

Since its formation in the 1990 s,China’s stock market has still adopted the approval system,which is more difficult to be listed due to long time and high cost.Therefore,it is difficult for enterprises to achieve listing financing so that to set its sights on the foreign capital market,which is relatively easy to be listed,to become a China-related enterprise.After almost shares listed in,once has the good market performance,but in a variety of reasons the shorting of the crisis,the market has been falling,and sustained economic steady development since the 21 st century in China,national planning strategy of new economy at the same time,the cognitive ability of people on the Internet and other emerging economic has improved,the prospects of the domestic market for any shares in the more advantageous.With more and more favorable factors such as policies,the attraction of China-related stocks rises day by day.In 2015,Focus media chose the backdoor listing path to become the first company back to Chinese markets;WuXi AppTec successfully returned in 2018,becoming the first case of spin-off return.This paper studies the path and the economic consequences of the separation of the regression path,expounds the procedure of the separation of the regression path,analyzes the motivation of the regression,why the separation of the regression path is chosen,as well as the advantages,innovations and applicability of the path,and makes a systematic analysis on the development status,market performance and business performance of demerit after the regression,and compares it with itself formerly and the average level of the industry to evaluate its regression effect.This article through the WuXi AppTec return path and its economic consequences research conclude that represented by WuXi AppTec return path can reduce information asymmetry caused by the low valuation risk,help enterprise focus on their core business,avoid to demolish VIE structure,speed up to return etc.;In terms of the path selection of returning to Chinese market,this paper compares the advantages and disadvantages of backdoor listing,overall IPO and spin-off regression,and believes that it is more efficient and secure to choose the spin-off regression path when conditions are satisfied.After the split and regression,the valuation of WuXi AppTec has improved,the financial risk has reduced,the profitability has enhanced and the development potential is good.Finally,according to the research process and conclusions,the relevant recommendations are made to the regulatory authorities and the China-related enterprises that want to return.