Research On Path Selection And Effect Of Chinese Concept Stock Companies Returning To Domestic Capital Market

Due to the imperfect structure of the early domestic capital market and the harsh financing environment,since the 1990 s,a number of Chinese enterprises have been born to seek development opportunities overseas,which is now known as Chinese concept stocks in the mouth of investors.However,most of the financing road to the sea is fraught with obstacles,such as malicious short selling of capital institutions,targeted regulatory policies and low valuation,which are insurmountable problems facing Chinese concept stock companies and consume the confidence of enterprise managers.As the bilateral relationship between China and the United States has entered the white-hot stage,the second crisis of trust between Chinese and American stocks has been ignited.Meanwhile,the shadow of the epidemic cannot be removed,and the beautiful illusion of the overseas financing market is gradually shattered.Different from overseas markets,the domestic capital market,which is in the transitional period of financial market and real economy,constantly extends olive branch,attracting a batch of Chinese concept stock companies to return to China with higher financing efficiency,lower listing cost and more reasonable regulatory policies.From the tide of going out to the tide of coming back,under this background,the choice of the path of return and the effect of return of Chinese concept stock companies have become a problem worthy of attention.This paper selects Mindray,the first company to return to the domestic capital market by IPO,as the research object,and takes the choice of its return path and the effect of its return to the domestic capital market as the entry point of the in-depth research and analysis.Firstly,this paper starts with the listing and regression of Chinese concept stock companies,and systematically introduces the various return paths of Chinese concept stock companies up to now.Secondly,it will return to the specific case of Mindray and elaborate on its complete return journey,including privatization and delisting,dismantling the red-chip structure and returning to the domestic capital market.At the same time,it summarizes the reasons for Mindray’s return,such as the attack of short selling institutions,the tightening of supervision,the high maintenance cost and the reform of domestic financial system,etc.,and makes use of the reasons to improve its return process.After sorting out the return process,the overall IPO listing selected by the case was compared with other return paths,the adaptability of other paths with Mindray was analyzed,and the reasons for choosing the overall IPO listing were summarized.Thirdly,event study method,financial ratio analysis method and factor analysis method were used to analyze the impact of Mindray’s market performance,vertical and horizontal financial effects and enterprise internal effects before and after its return.Finally,draw inspirations from the domestic regulators,Chinese concept stock companies and investors level.After the whole case study of Mindray regression,the following conclusions can be drawn: 1.Under the background of the case,the return path of choosing the overall IPO is the most suitable for Mindray itself.Compared with other return paths,this path has the advantages of low cost,high efficiency and preferential policies.2.After its return to the domestic market,Mindray’s market effect and financial effect have been significantly improved,and its overall ranking in the same industry has been significantly increased compared with that before its return,and its research and development capabilities and strategic plans have also been significantly optimized.Based on this study,the author believes that in the process of the return of Chinese concept stock companies,regulators,enterprises and investors all need to take measures to promote the domestic capital market ecology into a virtuous cycle.First of all,as the main body in the process of regression,Chinese companies should remember to be rational,weigh the cost of regression in advance,and maintain sensitivity to domestic and foreign policies.At the same time,enterprises should choose the appropriate return path according to the actual situation,so as to maximize the success rate of regression.Secondly,the regulatory agencies under the government should bear the brunt.They should not only accelerate the reform of the financial supply side,but also control the flow channel returning to enterprises in the whole process,so as to avoid the loss of foreign exchange reserves caused by excessive financing.Finally,investors should adhere to rationality in information judgment,follow the value of investment is greater than blindness,and contribute to the sustainable development of the domestic capital market.