Research On The Motivation And Effect Of Mindray Medical Returning To A-share Market

At the initial stage of the development of the domestic capital market,a large number of enterprises could not meet the strict listing requirements.The registration system implemented in the overseas capital market can provide financing convenience for enterprises.In the meantime,enterprises can also use overseas listings to build an international image and gain popularity.Therefore,a lot of Chinese companies plan to go public overseas.However,the upsurge of overseas listing has gradually cooled since 2010.Some Chinese concept stocks have plummeted after being shorted,and some Chinese concept stocks will face lawsuits due to information disclosure,financial fraud and other issues.There is no doubt that China concept stocks as a whole have fallen into trust crisis.On the other hand,the stricter regulatory requirements of overseas capital markets mean that the cost of maintaining the listing status of Chinese concept stocks has increased.Various factors have limited the healthy development of excellent Chinese concept stocks.The mechanism of the domestic capital market has become increasingly sound,and the China Securities Regulatory Commission has launched good policies to welcome the return of excellent Chinese concept stocks over recent years.The return of Chinese concept stocks is an irresistable trend.This article takes Mindray Medical,China’s largest medical device supplier,as the research object,and this article firstly sorts out relevant domestic and foreign literature on the return of Chinese concept stocks,and then combines the theory of undervaluation,investor cognition hypothesis and market timing theory.After a comprehensive analysis,it is concluded that the reasons for Mindray Medical’s return include avoiding short-selling institutions,underestimating market value in the United States,reducing listing maintenance costs,returning to facilitate strategic adjustment,and strong support from domestic policies.Then,from the perspective of the regression effect,the short-term market reflects better,the market value of enterprises has increased significantly,the EVA value has increased,the solvency has been significantly improved,and the risk of financial crisis is low.Enterprises use raised funds to expand business scale to increase production capacity,and equity concentration is conducive to improving decision-making efficiency.Finally,the inference of this paper is that Mindray Medical’s return motivation is correct,and the return behavior improves the market estimate of the company and promotes the sustainable and healthy development of the company,which proves that Mindray Medical’s return decision is correct.For Chinese concept stocks that are willing to return,they should formulate a reasonable privatization price and grasp the best time to return based on market valuation differences.The illumination of this case can improve the success rate of the return of Chinese concept stocks.