Research On The Motivation And Path Selection Of Chinese Concept Stock Returning ——A Case Study Of Montage Technology

Under the impact of trade war and COVID-19,the US capital market and its regulatory policies have undergone major changes.Chinese concept stocks are facing a great challenge.In early 2020,the fraud of Luckin Coffee set off a trust crisis of Chinese concept stocks and affected a large number of innocent companies.Under the comprehensive economic and political background,it can be predicted that there will be more Chinese concept stocks choose to return.Is the return of Chinese concept stocks just for higher valuation and more financing? What factors should Chinese concept stocks consider when determining their return path? From privatization to relisting,what kind of impact will it bring to Chinese concept stocks?It is important to the Chinese concept stocks on the way home,also to the regulators.Unlike the first batch of Chinese concept stocks that have successfully returned,such as Focus Media and Giant Interactive Group,the return of Chinese concept stocks is now facing more choices and more convenient.However,the related research still lacks a systematic review of the Chinese concept stocks' return path choices.Besides,most studies still focus on backdoor listing,but few on IPO return.Therefore,this article takes the IPO regression of Montage Technology as an example,takes the method of case study,comparative analysis,and literature research to explore the motivation and path selection of Chinese concept stocks' return.Firstly,this article reviews the history of Chinese concept stocks and the feasible return path under the new policy environment.Secondly,this article analyze the whole process of the case company Montage Technology's return and then explores the motivation of the return and the consideration factors of the company's choice of return path.Then,this article evaluate the effects of Montage Technology's return from the market reflection,strategic development and financial performance.Finally draw conclusions and make recommendations.This paper finds that the main reason for Montage Technology's return is to complete the strategic transformation by taking advantage of the opportunity of privatization.At the same time,it also has the consideration of reducing the maintenance cost of listing,seeking the wealth appreciation of shareholders and management,and the policy factors.When making path decisions,Chinese concept stocks have to choose "how to return" and "where to return".The policy stability and the company's decentralized ownership structure make Montage Technology choose the path of IPO.Besides,the equity concentration has a common influence on the return method of Chinese concept stocks.The equity decentralizations makes it more difficult for companies to reach backdoor transactions,so IPOs are generally preferred for them.In the determination of the target market,the difference in the listing speed,the matching degree between the company and the list market's positioning make Montage Technology choose the SSE Star Market.In terms of effects,Montage Technology has successfully achieved strategic transformation and valuation enhancement through the return.Meanwhile,the return has also brought a positive impact on the company's financial performance.The changes in financial data also reflect the decline of its original business and the rise of new businesses,which proves that the decision to privatize for strategic transformation is correct and in time.This is also one of the important innovations of this article.As the first Chinese concept stock listed on the SSE STAR Market,Montage Technology's return path may gradually become one of the main choices of Chinese concept stocks,which has a strong reference and significance.Through the case study of Montage Technology's return,this paper enriches the literature on the path of IPO.In particular,it has discovered the influence of equity concentration on the selection of Chinese concept stocks listing method.Meanwhile,it provides experience reference for other companies,also conducts to the improvement of relevant policies in the capital market.