Analysis Of The Motivations,Paths And Effects Of The Split Of Photovoltaic China Concept Stocks To List In STAR Market

Chinese enterprises first appeared in the 1990s when they sought to go overseas for listing.These Chinese enterprises listed overseas are known as Chinese equity companies.The earliest photovoltaic company to go public in China was Wuxi Suntech Power,which landed on the New York Stock Exchange in 2005.Since then,a great sum of domestic photovoltaic companies have been listed in the United States.However,photovoltaic shares have not been recognized in the United States capital market for a long time,and the market value has been underestimated all year round.Recently,the Chinese capital market has made great progress,and the return of the Chinese shares to the A-share market has been basically unimpeded.In combination with their own development needs,photovoltaic companies have chosen to return to A-share listing.In this context,the research topic of this paper is the motivation,path selection and effect analysis of the return of photovoltaic stock to A shares,aiming to enrich the relevant literature of the return of Chinese stock and provide reference for other Chinese stock companies that intend to return to A shares.This paper selects Jingko Energy’s spin-off subsidiary to land on the science and technology innovation board as the research object,and analyzes the motivation,path selection and performance of Jingko Energy’s return after the spin-off and listing through literature research,case study and other research methods.First of all,in the basic part of the research,this paper summarizes the relevant research on the return of the Chinese stock market and the split listing in the existing literature,and has a preliminary understanding of the general situation of the return of the Chinese stock market,the causes and effects of the split listing.This paper also summarizes the situation of the delisting and return of the general shares of photovoltaic companies to A shares,laying a foundation for the later analysis.In the case analysis part,this paper first introduces the situation of the parent company and its subsidiaries,the process of the split listing,then analyzes the external and internal reasons of the case company’s return to A-shares in detail,and analyzes the choice of the case company’s split and return,the choice of the listing method and the choice of the listing plate.The effect of listing is analyzed comprehensively from the aspects of market effect,financing effect,financial performance and non-financial performance.On this basis,the main research conclusions of this paper are as follows:(1)The motivation of the case company’s return to A-share is mainly divided into two aspects:external and internal,and the main external factors are the limited hairdressing exhibition and favorable domestic policies;Improving the company’s valuation,meeting financing needs and improving operating performance are the main internal reasons.(2)In terms of route selection,affected by overseas business,company strategy and delisting cost,the case company did not choose to delist from the US stock privatization,but chose to split and return;Among the listing methods,due to the implementation of the registration system,IPO has greater advantages over other listing methods;In the listing sector,the Science and Technology Innovation Board has advantages in terms of listing duration,listing success rate,listing costs,etc.,so the case company finally chose to split its subsidiaries back to the Science and Technology Innovation Board for listing.(3)In terms of listing effect,the split listing has significantly improved the short-term market effect of the parent company and its subsidiaries,as well as the stock price and market value;The subsidiary has raised sufficient funds through listing,but has limited improvement in its capital structure;From the perspective of financial performance,the profitability of subsidiaries has increased,their debt paying ability has improved,and their operational and growth capabilities have improved;From the perspective of non-financial performance,after the listing of subsidiaries,an incentive and constraint system has been established,resulting in a significant increase in research and development investment,which is conducive to the long-term development of the company.Based on the above research,this paper puts forward the following suggestions for other companies that choose to return to the A-share market:(1)In terms of the reasons for returning to the A-share market,the photovoltaic companies have comprehensively considered the changes in the internal and external market environment,their own development needs and other factors,and only after fully evaluating the necessity can they implement the return to the A-share market to achieve the expected effect.(2)In recent years,there are many ways to go back to A for listing.Only by fully investigating the listing method and listing plate suitable for the development of enterprises,can we better meet the needs of enterprises.(3)The effectiveness of listing not only requires examining the stock price,market value,and financing amount of the parent company and its subsidiaries,but also in-depth analysis of changes in the company’s profitability,debt repayment,operations,growth,and other aspects after listing.It also requires paying attention to matters that affect the company’s long-term development,in order to more comprehensively evaluate the impact of listing on the company.