Research On The Motivations,paths And Effects Of Chinese Concept Stocks’ Dual Listing

In the 1990 s,many Chinese companies went public in the United States due to their need for financing and the market’s lenient listing requirements.However,since 2018,an increasing number of Chinese businesses in the United States have confronted the struggle for survival and growth.After the introduction of the Holding Foreign Companies Accountable Act in the United States,regulation of the capital market has become more stringent.Conversely,short-selling institutions on the US stock market frequently initiate short selling against Chinese enterprises by exploiting information asymmetry or the financial problems of certain Chinese enterprises,resulting in a sharp decline in the stock prices of relevant enterprises.In contrast,the domestic capital market’s listing rules have been continuously optimized,and a number of policies have been implemented to encourage the return of Chinese concept equities.The return of Chinese concept equities to the domestic capital market has therefore become the focal point of the current capital market.XPeng,the returned stock,is used as a starting point to analyse the motivation,path,and effect of its return,which has significant theoretical and practical implications for the rational decision-making of investors,policymakers,and Chinese concept stock enterprises that plan to return to the domestic capital market.External and internal motivations for Xpeng’s selection of Hong Kong as the listing location are examined first.Second,the three routes Chinese companies take to the Hong Kong capital market are compared,and the dual listing procedure of Xpeng is examined.Finally,the impact of Xpeng’s dual listing in Hong Kong is examined from three angles: short-term market reaction,long-term financial performance,and non-financial performance.The analysis yields the following three conclusions:(1)The return of Chinese concept stocks is one of the unavoidable options for its own development;(2)The paths of concept stock returns are based on motivations and self-capabilities;(3)The return of Chinese concept stocks has a positive effect on businesses.On this basis,enlightenment and recommendations are provided from the perspectives of Xpeng Automobile,the Chinese concept stock enterprises to be returned,investors,and policymakers in order to assist them in making rational decisions and supplement the pertinent case studies.