Effect On Return Of Chinese Concept Stocts By The Way Of Spin Off

The past 20 years,overseas listing has become an important symbol of the business results of domestic enterprises,and also brought success and glory to these enterprises.These overseas listed enterprises have achieved good development by virtue of the financing convenience of the international capital market.However,after all,the overseas Chinese shares are domestic enterprises whose main businesses are all in China,and the identity of overseas listing also brings many problems,especially under the impact of short selling of companies such as muddy water,the refinancing convenience of initial listing disappears,and the value is underestimated,so the Chinese shares choose to withdraw from overseas and return to the A-share market.In 2015,the state intended to guide China capital stocks to return to China through marketization at the strategic level,inject new vitality into "mass entrepreneurship and innovation",and successively issued China capital stocks return policies,including securities market innovation and regulatory policy adjustment,and gradual relaxation of relevant national industrial policies.Many Chinese capital stocks return to A-shares through backdoor,which gradually leads to the prevalence of speculation in the capital market.The speculative atmosphere of pursuing overnight violence permeates the market,making some shell companies sell at a price and the price of shell resources soars.In 2016,China Securities Regulatory Commission issued the draft of management measures for major assets reorganization of listed companies,also known as "the most stringent backdoor new regulations in history".In this context,this paper selects Wuxi AppTec,the first stock to return to the domestic capital market through IPO in the path of "one split three",as the case study object,to analyze the return motivation of Wuxi AppTec and the reasons for choosing the split listing.It also focuses on the market effect and financial effect after the return of Wuxi AppTec to the domestic capital market.It is believed that the business of Wuxi AppTec is very independent,and the choice of spin off can meet the needs of different business development,and provide financial support for the return of the main part of Wuxi AppTec to A-share,so as to realize the effect of maximizing market value.In this paper,first of all,through the relevant concepts and existing research,we summarize and summarize the return of China's equity,forming the theoretical basis of this paper.Secondly,the case study method is used to analyze the reason and effect of Wuxi AppTec's return to domestic capital market in the way of spin off.Based on the reasons of low valuation of enterprises,strategic needs of enterprises,blocked backdoor return path,difficult return to IPO as a whole,and policy support from regulators for IPO return,Wuxi AppTec chose to withdraw from the market by privatization and return to the domestic capital market by "one break three" method.After the return of Wuxi AppTec,the overall market value has been greatly improved,and a good market effect has been achieved.In terms of financial effect,this paper analyzes the business segment after the separation and return of Wuxi AppTec in detail,selects important financial data,and makes a comparative analysis of comparable enterprises in the industry.It can be seen that Wuxi AppTec is in the leading position in the domestic pharmaceutical industry,and its profitability is much higher than other enterprises,with obvious competitive advantages.After the division of the business sector,Wuxi AppTec has been able to focus more on the main business operation and improve the business performance.Finally,based on the above analysis of the case,this paper puts forward suggestions and suggestions for the company and regulatory.