Research On The Motivation And Economic Effects Of The Return Of Chinese Stocks To A-share

Since Brilliance Auto successfully landed on the NASDAQ market in the 1990 s,some domestic enterprises,for the sake of improving their international business and influence,tend to be listed abroad.These companies are commonly called as Chinese stocks.Due to the relatively standardized supervision,no profit requirements and strong market liquidity,it is relatively easier for domestic enterprises to be listed in overseas capital market.However,lately,thanks to the undervaluation and increasingly better policy of domestic capital market,Chinese stocks have set off an upsurge of returning to the A-share.In the early days,the main way for Chinese stocks' return is backdoor listing.Later,with the development of regulatory policy,split listing,IPO and CDR listing have become new choices.As the registration system promoted gradually and comprehensively,it is expected that IPO listing will become the mainstream in the future.Based on the deepening of reform of listing rules and the increasing uncertainty of Sino-US relations,Semiconductor Manufacturing International Corporation's listing is of milestone significance.Combined with the case of SMIC'IPO and market timing theory,this paper analyzes how small and mediumsized stocks return to the domestic capital market in a way suitable for their own characteristics under the new regulatory policy.From the theoretical perspective,this article tidies up some research results by the former scholars about the related issues of the return of Chinese stocks to Ashare,and creatively apply the market timing theory to the event of the return of Chinese stocks.Then,this paper draws a brief introduction of SMIC,combining the newest policies for red chip corporation,the study finds that risk of short selling,undervaluation,favorable market timing,and the need for strategic adjustment are the main intentions.Moreover,this paper discusses the economic impacts after SMIC's return,and points out that the market value growth,remarkable improvement in operating income and promotion of the domestic semiconductor market are the major economic impacts.Finally,combined with the results of the case study,this dissertation summarizes the experience of Chinese stocks returning to A-share,and recommends some proposals for the concerned ones,including regulators,retail investors and Chinese stocks.