Research On The Motivation,Path And Risk Prevention Of Hong Kong Stock Returning To A-share SSE Star Market

In the early stage,the threshold of listing in the domestic capital market is high and difficult,so many scientific and creative enterprises choose to list overseas in order to develop.However,since the establishment of the SSE STAR Market in 2019,A large number of Hong Kong stock enterprises have chosen to return to the domestic SSE STAR Market for development,and the return of Hong Kong stock to A-share SSE STAR Market has gradually become A trend that cannot be ignored.Taking SMIC as an example,this paper studies the motivation,path and risk prevention of SMIC's return to A-share SSE STAR Market,and draws the following conclusions :(1)The motivation of SMIC's return to A-share SSE STAR Market is mainly to meet the market value management needs,meet internal financing needs,improve brand awareness and the encouragement and support from the Chinese government;(2)As for the selection of SMIC's return path,this paper makes a comparative analysis of spin-off listing,issuing CDR and overall IPO listing,and finds that it is more convenient and more in line with the enterprise's development strategy for SMIC to choose the overall IPO listing.(3)After SMIC returned to SSE STAR Market,its operating conditions improved,its financial risks decreased and its market valuation increased;(4)The risks of SMIC before the return mainly include the risk of institutional differences and the risk of failing to meet the issuing standards.After the return,it needs to pay attention to the risk of fulfilling the listing commitment,the risk of increased exchange losses and the risk of control transfer.SMIC has taken effective measures to prevent these risks by strengthening internal control,improving governance structure and employing professional organizations.This paper selects the representative red-chip SMIC as an example.For the first time,based on the “red chip + SSE STAR Market” corporate case,this paper studies the motivation,path,and risk prevention of Hong Kong stocks' return to the A-share SSE STAR Market,not only enrich the cross-listing field of literature,but also for the proposed return to the A-share SSE STAR Market of the Hong Kong stock enterprises to provide practical reference.