Research On The Motivation And Path Of China Capital Stock Returning To A Share ——Take JASO And Trina Solar As Examples

Since the first China capital stock Brilliance automobile was listed in the United States in 1992,many Chinese enterprises have chosen to go to overseas capital market for financing in order to reduce the financing cost and meet the financing demand,which has formed the craze of China capital stock.However,due to the shorting of overseas short institutions,the investigation of regulatory agencies,and the information asymmetry between foreign investors and Chinese enterprises,many of them have been undervalued for a long time,and their listing maintenance costs are high,which cannot meet the financing needs.Since 2015,a large number of China capital stocks have chosen to delist from the United States and seek to return to the domestic market.The return of China concept shares usually requires privatization and delisting first,then the red chip structure and VIE structure are disassembled,and finally the return is completed through IPO,backdoor listing and other means.Each step has a variety of options.How to plan the return scheme and choose the appropriate return path becomes the key point to a smooth return.On the basis of literature review and theoretical analysis,this paper analyzes and summarizes the overall process of the return of China capital stock from privatization to landing on A-share,and selects two recently completed return of China concept share enterprises,JASO and Trina Solar,as target cases for comparative analysis,Through the comparison of the two enterprises in the aspects of return motivation,process,path selection,performance and risk,it is found that the rapid return of JASO benefits from the preparation of shell resources in advance,while Trina Solar limited by its own complex business and equity structure,coupled with IPO queuing and lack of shell companies and other factors,it did not complete the return process until the launch of the science and technology innovation board.China capital stock enterprises should pay attention to their own equity structure and corporate governance level in advance,simplify and sort out the business system,make a clear plan for the return and choose the path suitable for themselves according to their own strategic needs and policy changes.And combined with the analysis and summary of the emerging paths such as IPO and CDR of the science and technology innovation board,the enlightenment to the development of China’s capital market is obtained.