Research On The Motivation,Path And Economic Consequences Of The Return Of China Stocks

There is the first boom of the return of China concept stock in 2015,with a total number of more than 30 Chinese concept stock companies proposed privatization.As of 2019,more than 100 Chinese concept stock companies have delisted from the U.S.stock market.The financial fraud incident of Luckin coffee in 2019 has put the Chinese concept stock companies in a controversial position.In addition,the domestic capital market has enthusiastically embraced high-quality Chinese concept stocks,and 2021 will be the second boom of the return of Chinese concept stocks.Troughing back at the Chinese concept stocks which have successfully returned to the domestic market,Mindray Medical is the only Chinese concept stock that has successfully returned to Chinese capital market through the overall IPO path,and its success has a certain reference value.This dissertation analyzes the motivation,path and economic consequences of the return of Mindray Medical,which can provide a reference for Chinese concept stock companies that are preparing to return.This dissertation is divided into seven parts:The first part is the introduction.It first proposes the background and significance of the topic.Then,the literature review of the domestic and foreign literature systematically collects different findings,focusing on the motivation,path and economic consequences of the China concept stocks.Further,explain the research framework and use of this dissertation.Lastly,summarize the innovations and shortcomings.The second part is the definition of concepts and related theories,which define the concepts of Chinese concept stocks and BVI companies and introduce the basis of research on the theory of value underestimation and the theory of Circumvention.The third part is the case introduction of Mindray Medical,using the method of case analysis to connect overseas listings and privatization with domestic A-share listings through a timeline,analyzing the entire case process of return after overseas listing in stages,and summarize the efforts which have put on privatization returns.The fourth part is the analysis of the motivation of the return of Mindray Medical’s privatization,which is interpreted and analyzed from internal and external perspectives.The fifth part is the path analysis of the return of Mindray Medical’s privatization.By sorting out the paths and methods of the Chinese concept stocks’ returns,the reasons for Mindray Medical’s selection of the GEM as an overall IPO are summarized through comparative analysis.The sixth part is to analyze the economic consequences of the return of Mindray Medical’s privatization from the perspective of the effectiveness of listing and financial indicators.From one perspective,using the horizontal comparative analysis method,comparatively analyses the Mindray Medical and other comparable companies,which shows the level of financial indicators of Mindray Medical among comparable companies.From another perspective,using longitudinal comparative analysis methods on the time and duration of Mindray Medical’s delisting on the New York Stock Exchange and listing on the A-share market,compare its vertical financial data and assessing its economic consequences of return.The seventh part is research conclusions and enlightenment.According to the division of overseas and domestic capital markets,it provides enlightenment to Chinese concept stocks companies who are preparing for overseas listing and privatization,domestic investors,industry competitors and regulatory authorities.Through analysis,it is found that the return of Mindray Medical’s privatization has both internal and external motivations.Internal motivations for returning to A shares are due to underestimated overseas listing value,high maintenance costs,malicious short selling by short-sellers,and the company’s strategic adjustments.The external motivations for returning to A shares include domestic policy support,the positive environment for the development of the medical industry,and the strict supervision from the US.In terms of path selection,Mindray Medical’s selection of the GEM as an overall IPO are summarized under its excellent financial conditions and the domestic welcome policy for China’s concept stocks.In terms of economic performance,after the privatization of Mindray Medical,it has outstanding performance in both the listing effect and financial indicators.The contribution of the dissertation mainly lies in: Firstly,for the research perspective,this dissertation focuses on economic factors and non-economic factors which pay attention to the industry development environment and capital market policies,analyzing the return motivation through internal and external perspectives.Besides,it pays attention to economic consequences such as market reflections and economic indicators to evaluate the return.Secondly,in terms of selecting research objects,Mindray Medical is currently the only Chinese concept stock that has successfully returned to the domestic capital market through an overall IPO,and then it has positive capital performance after the return.Its special return path has certain research significance,which is an important supplement to the research on the return path of China concept stocks,and a certain reference value for China concept stocks preparing to return to the domestic A-share market.