| Since the 1990s,Chinese companies that can not meet domestic listing requirements due to strict domestic supervision have begun to take the steps of listing overseas.These companies have their main business and control rights in the country and are known as Chinese concept stocks.Due to malicious short-selling in overseas capital markets for more than ten years,shareholder lawsuits,severely underestimated market value,and the rapid development of domestic capital markets and the continuous relaxation of listing policies,the Chinese concept stocks have been delisted and return to the domestic capital market since 2011.Perfect World is one of them.It took less than one year to complete its delisting and relisting.The secret of its success lies in the return path.The return path of Perfect World is unique because of its short time-consuming and advance layout.Its overseas listed main body Perfect World which controls the domestic Perfect World Game and Perfect World Film and Television companies through VIE,so the return of Perfect World is divided into two steps: firstly,cancel the VIE structure of Perfect World Film and Television in advance,and choose the opportunity to backdoor listing to obtain an A-share platform;secondly,the privatization of PFWD and the injection of Perfect World games into the listed company,and the merger of movie and game to achieve an overall return.The research on the unique regression path is significant.The existing literature on the return of Chinese concept stocks mainly includes the reasons and effects of the privatization and regression performance.However,there is a lack of analysis of the reasons for the selection of the regression path,and it focuses on valuation and from a risk perspective,there are few literatures on the return of Chinese concept stocks from a strategic perspective.In general,it is lack of revealing the mechanism of the return path selection of Chinese concept stocks.Therefore,this article discusses the internal mechanism of the path selection of the perfect world return based on the perspective of strategic orientation.Based on the analysis of strategic orientation,market timing,and prioritized financing theory,this article uses case study.The innovation point lies in revealing the mechanism of regression path selection from strategic pespective.According to the logic of event development,firstly the company decide to delist and relist,then choose the regression path,and finally verify the regression effect.So this article analyze the reasons for the privatization of Perfect World,then the reasons and success of the path selection in the privatization and re-listing phases,as well as the return effects.The reasons for the privatization of Perfect World lie in the strategic orientation of movie and game linkage,low foreign valuation and domestic policy support;during privatization,long-form mergers can avoid risks and shorten the time period.The reason for choosing to be acquired by Perfect Film and Television is to obey the strategic goals of movie and game merger and not meet the requirements of backdoor listing and IPO.The successful return is due to the advance layout,timing and risk control;after the return,Perfect World’s financing capabilities have been enhanced,and the strategy has been developed.Thus achieved the return effect of solvency,profitability,growth ability improvement,stock price rise,and price-earnings ratio growth.This article draws the following conclusions through research: the privatization of Perfect World is mainly affected by the movie and game linkage strategy;Perfect World chose to inject Perfect World games into Perfect World to achieve its strategic goal of the movie and game dual engine;the successful return of Perfect World lies in the advancement of acquiring A-shares;after the return,the changes in the two key factors of financing and strategy have stimulated the company to achieve financial and market performance,so it verified the correctness of choosing a return path from a strategic perspective. |
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