Reasons For Ming Yang Smart Energy To Issue GDR For Overseas Listing Under The Background Of Shanghai-London Stock Connect And Performance Research

With the deepening of the integration of the world economy,the scale and speed of international trade and investment are growing,and the links and interdependencies between countries are also increasing.Overseas listing of enterprises has become the norm.However,in recent years,the trend of trade protectionism and anti-globalization has become increasingly strong.The U.S.government has taken a series of severe measures to supervise overseas enterprises listed in its territory.Under such circumstances,domestic enterprises will face greater risks and challenges when listing and financing overseas,while those enterprises seeking to list overseas will find other more suitable listing locations.This will not only change corporate financing strategies,but also have a significant impact on global capital markets.In February 2022,the CSRC issued the Regulation on the Interconnection of Depositary Receipts between Domestic and Overseas Stock Exchanges,which expands and upgrades the original "Hurun Connect" mechanism.In July of the same year,Ming Yang Smart Energy issued Global Depository Receipts in London and listed for trading,becoming the first A-share listed private enterprise to complete the overseas listing of GDR after the implementation of the new regulations on interconnection of depository receipts.In this paper,the case of overseas listing of Ming Yang Smart’s GDR is selected as the research object.Firstly,the previous scholars’ research on the motivation and performance of overseas listing of enterprises is sorted out by literature analysis,which is the explanatory basis and theoretical basis of this paper.Then,the motivation of overseas listing of Ming Yang Smart Energy is explored from the inside and outside,and then the choice of its listing path is discussed,and then the timing of its listing is analyzed.Finally,the performance of overseas listing is analyzed.Through the event research method,this paper analyzes whether the overseas listing of Ming Yang Smart Energy has an impact on the stock return rate,and analyzes the impact of overseas listing on the solvency and other operating capabilities of enterprises from the corresponding financial indicators.This paper analyzes the performance of Ming Yang Smart Energy’s overseas listing and finds that in terms of market performance,from the first trading day to the fifth trading day after the overseas listing event,the stock’s excess return rate fluctuates greatly,and the excess return rates are all positive for the five trading days.The cumulative excess return rate also shows an obvious upward trend,reaching 17.44%,indicating that the capital market has made a positive response to the events of Ming Yang Smart Energy’s overseas listing.In terms of financial performance,Ming Yang Smart Energy has shown a positive performance,and the corporate debt paying ability has been improved.All other capabilities have performed well,which has improved the corporate governance level.It shows that overseas listing is beneficial to the development of Ming Yang Smart Energy and has brought positive impact to the enterprise.This provides valuable inspiration and experience for other China enterprises that choose to list overseas in the future.