Research On Return Path,Risks And Economic Consequences Of Chinese Concept Stock

The early non-sound Chinese capital market pushes domestic enterprises to choose overseas capital market for financing to promote enterprise development.However,the subsequent market performance of Chinese concept stock enterprises is not ideal due to the crisis of trust in Chinese concept stock companies and the uncertainty of overseas market policies.Facing the high cost of listing overseas and low market value,Chinese companies are in dilemma.At the same time,the vigorous development of the domestic capital market has provided another development platform for enterprises,so the pace of Chinese concept stock enterprises’ return to A-shares is gradually accelerating.As a unique capital market phenomenon in China,the path selection,the risk factors and the economic benefits of enterprises after the return have high research value.Through selecting the case of Ming Yang Smart Energy returning to A-shares,this thesis mainly analyzes the company’s IPO return to A-shares path selection,the risks contained in the return process and the market and financial performance after the return of the enterprise respectively.As the third largest enterprise in China’s wind power equipment manufacturing industry,Mingyang has a certain role in the demonstration in the industry.Therefore,the successful experience of returning to A-shares and its foreseeable development space can provide reference ideas for the subsequent return of concept shares.First of all,on the basis of fully combing the existing academic achievements and relevant theories,this paper analyzes the path,existing risks and afterwards performance of Chinese concept stocks from a macro perspective.Secondly,in the analysis of Mingyang,this thesis analyzes the reasons for IPO selection of Mingyang from the internal factors of the company and the external market conditions.During the return process,this paper mainly analyzes the risk factors from two stages of return including privatization delisting and A-share listing.Finally in terms of enterprise economic performance after returning to A shares,this thesis respectively analyzes from the perspective of market economic and financial performance to evaluate the enterprise performance.Among market economic analysis,event study and valuation measure are used respectively.Additionally,EVA analysis method in the financial performance and financial indicators analysis are utilized in financial performance analysis.Through the above analysis,this paper believes that Mingyang choosing IPO to return to A share is out of the following three factors: First,the company’s operation is in line with the IPO listing requirements.Secondly,it is important for private enterprise like Mingyang to maintain the stability of corporate governance structure.Third the back-door listing path has lost its advantages.In the analysis of the risk factors in the returning process,this thesis believes that risks of Mingyang mainly exists in the privatization and delisting stage and relisting stage including buyback payment risk,minority shareholder litigation risk,overseas structure supervision risk and re-listing uncertainty risk.Finally in terms of the enterprise economic benefit analysis,this paper argues that Mingyang has gained fair market valuations after listing in A-share,and made full use of the funds into enterprise operation and development,but the company did not achieve improvement in the assets and liabilities structure.In addition,there is a mismatch between the capital scale and its own operation and production capacity,which will be an obstacle of the future development of enterprises.Finally,this thesis summarizes the successful case of Mingyang returning to A-share,and proposes suggestions respectively for the regulatory authorities and the follow-up Chinese concept stock companies.For the regulatory authorities,they should continue to strengthen the construction and improvement of delisting system and Chinese concept stock listing system;For Chinese concept stock enterprises,they should hold reasonable reason and motivation of backing to A-share,select return path correctly and make real-time adjustment,properly deal with the risk factors in the process of returning and appropriately utilize the public funds and make reasonable planning in such aspects as increasing performance,improve the capital structure,so as to achieve maximized value and avoid redundancy.This article mainly carries innovation in topic selection and research approach.In the topic selection,this paper studies the IPO method which is seldom selected in the current return path studies,explores the reasons and characteristics of enterprises to choose this method,and provides reference for the Chinese concept shares that return to A-shares by IPO in the future.Secondly,in terms of research approach,this paper systematically analyzes the motivation,process,path selection,risk factors and economic benefits of the case enterprises’ return to A-shares,in order to analyze the phenomenon of the return of Chinese concept shares to A-shares from a comprehensive perspective and propose targeted suggestions.