Research On The Return Path And Effect Of Chinese Concept Stocks

In recent years,our country’s capital market has developed rapidly,and related legal systems and regulatory systems have gradually improved.A large number of Chinese concept stocks that have gone public in the United States have sought to return to the domestic market.The increasingly stringent listing environment in the United States,the ever-increasing listing costs,and the inability to reflect the true value of companies have combined to promote the return of Chinese concept stocks.At present,the return of Chinese concept stocks mostly adopts the "three-step" traditional return method,that is privatize and exit the US stocks,dismantle the VIE structure,and finally return to A shares.By combing through the methods that have successfully returned to Chinese concept stocks and returning to A-share market,four paths are summarized: IPO,backdoor listing,reorganization listing and the listing of the New Third Board.These four paths have their own advantages and disadvantages.This article summarizes their features and applicable companies.Among all the Chinese concept stock companies that have returned,most companies choose IPO listings and backdoor listings in terms of path selection.In the industry selection,Internet companies tend to choose backdoor listings,and companies in the medical industry are more willing to return with IPO listings.At the same time,regulators have gradually paid attention to the return of Chinese concept stocks and provided various conveniences for IPO listings and backdoor listings.This article hereby selects the typical companies that have returned under these two paths: Mindray Medical and 360,the distribution represents the medical device industry and the Internet software and service industry.After analyzing the causes,paths,and effects,it was found that the two companies had some similarities and differences.What they have in common is that the reasons for the return are all due to business transformation and adjustment strategy considerations,strong support from domestic policies,and underestimation of market valuations.After the return,the profitability has been further enhanced and is at the forefront of the industry,both companies are very Pay attention to R&D investment.The difference is that the two companies have chosen different return paths according to their actual conditions.Mindray Medical uses IPO to go public,while 360 uses a backdoor listing,and the return time of 360 is less than Mindray Medical.Although the other two companies have positive effects,their operating performance after the return is different.Mindray Medical has always maintained a strong development momentum.The valuation premium of 360 was too high when it returned,and its performance in the later period was slightly insufficient.Finally,based on case analysis,some suggestions are made for Chinese concept stock companies,investors and regulators.For Chinese concept stock companies,it is necessary to correct the motives for the return,and to rationally return based on actual needs;pay close attention to changes in policies and the market environment;face up to the various risks and uncertain factors encountered.Investors should maintain a cautious attitude,improve professionalism and risk identification capabilities,and invest rationally.Regulators should strengthen supervision,establish a sound supervision system,and severely crack down on market arbitrage;strengthen the construction of multi-level capital markets;improve the delisting mechanism.