Research On The Motivation And Economic Effect Of Trina Solar's Return To A-share

The United States has always been an important place for Chinese companies to list overseas,and with the escalating trade frictions between China and the United States,the United States has continuously introduced relevant policies to strengthen the supervision of Chinese concept stock companies,especially the introduction of the Foreign Companies Accountability Act in 2020 has triggered the delisting crisis of Chinese concept stocks in the United States.The differences between China and the United States on cross-border audit supervision not only hinder the pace of listed companies planning to go to the United States,but also increase the uncertainty of the future prospects of Chinese concept stock companies in the United States,and in the long run,the pressure of Chinese concept stock companies to delist remains.On the other hand,the Chinese mainland capital market,the establishment of the Beijing Stock Exchange and the promotion of the registration system reform have created a good environment for the return of Chinese concept stock companies,so it is expected that more Chinese concept stock companies will choose to return in the future.In this context,this thesis selects Trina Solar as the case study object,and studies the motivation and economic effects of Trina Solar’s return to A-shares by using case analysis method,literature research method and event research method.This thesis reviews the motivation,path,return location,and economic effects of Chinese concept stock enterprises choosing privatization and delisting.The concepts of Chinese concept stocks,Chinese concept stocks,and red-chip structure and related theoretical foundations required in this thesis are defined;It further introduces Trina Solar’s choice of A-share path,digs deep into the motivation for its privatization and delisting,and chooses IPO listing,and compares and analyzes the economic effects before and after its return.It is found that: firstly,Trina Solar’s return path is privatization and delisting,dismantling of red-chip structure,and IPO landing on the science and technology innovation board;Trina Solar’s internal motivations for returning to A-shares are the serious undervaluation of corporate value,broadening financing channels and strategic transformation.External motives are favorable domestic policies and poor foreign regulatory environment,and the choice of IPO listing is mainly due to the difficulty of seeking high-quality shell resources.Secondly,this thesis compares and analyzes the economic effects of Trina Solar before and after its return to A-shares from the perspectives of market reaction,financial effect and non-financial effect,and the results show that,overall,Trina Solar’s return to A-share has brought positive economic effects to enterprises.While Trina Solar’s return has helped the company grow further,it also needs to guard against potential risks such as excessive gearing ratios.Finally,the case is summarized and analyzed,and relevant suggestions are put forward from the two levels of Trina Solar itself and Chinese concept stock enterprises,hoping to provide reference and reference for other Chinese concept stock enterprises that intend to return to A-shares.