A Study On The Motivation,path,and Performance Of The Separation Of Chinese Concept Stocks And The Return To A-shares

The development of the socialist market economy system has promoted the growth of capital demand for Chinese enterprises,and many companies have gone overseas to list and raise funds.However,due to malicious attacks from foreign short selling institutions and low valuations in overseas markets,Chinese concept stock companies launched two large-scale privatization and return waves in 2010 and 2015,returning to the domestic capital market in order to obtain more investment opportunities.In recent years,due to the formulation and implementation of the Foreign Company Accountability Act in the United States,the stock prices of Chinese concept stock companies that are subject to strict regulation in the United States have generally declined and there is a risk of delisting.Therefore,a large number of Chinese concept stock companies have begun to actively plan return strategies and prepare for returning to the domestic capital market.In recent years,the number of Chinese concept stock companies that have successfully returned is not large,and most of them adopt the method of delisting after privatization before going public.This process of returning to the domestic capital market after delisting is complex and time-consuming.In recent years,new paths of return have emerged,allowing for direct return to the domestic market without privatization and retaining the status of Chinese concept stocks in foreign capital markets.However,this regression method is in its early stages,and there is relatively little research on this phenomenon in China.Based on this,the case selected in this article is the Cayman Daquan spin off of Daquan Energy and its return to A-shares.Daquan Energy is a controlling subsidiary of Cayman Daquan and an entity engaged in all production and business operations of Cayman Daquan.Cayman Daquan does not engage in any production or business operations and is only a shareholding enterprise.Cayman Daquan did not undergo privatization and delisting,but instead chose to spin off its subsidiary Daquan Energy as a whole and list on the Science and Technology Innovation Board,in order to accelerate the return speed,improve the return efficiency,and return to the A-share market while maintaining its listing status on the US stock market.Therefore,this case has research value.By analyzing the reasons for the parent company’s spin off of subsidiaries to return to A-share,the path of spin off and return,and the impact of spin off listing on the market value,financial performance and non-financial performance of the parent company and subsidiaries,this paper provides certain reference value for the future Chinese concept stock enterprises to choose the spin off and return path.In this paper,case analysis,literature research and event study are used in the research process.The research ideas are as follows: Firstly,summarize and summarize the theoretical achievements on the regression path and split listing effects of Chinese concept stocks at home and abroad,and propose the research value of this article;Secondly,it summarizes the paths and common motivations of the return of Chinese concept stocks,and compares and analyzes the advantages and disadvantages of various return paths;Once again,introducing the case study of this article,the focus is on explaining the reasons for the Cayman Daquan split and Daquan Energy’s return to A-share listing,why it chose to split to the Science and Technology Innovation Board,the market reactions of A-shares and US stocks before and after the split,and the changes brought by the split and return to the financial and non-financial performance of the parent company and subsidiaries;Finally,summarize the case as a whole and provide suggestions for Chinese concept stock companies and relevant regulatory agencies that want to return to A-shares.The main conclusions of this article are:(1)Both internal and external factors jointly drive the regression of Chinese concept stocks.(2)The decision of Cayman Daquan to split Daquan Energy and return to the Science and Technology Innovation Board is the result of a combination of internal and external factors.(3)The separation of Cayman Daquan and the return of Daquan Energy have had good financial effects on both the parent and subsidiary companies,increasing Daquan Energy’s financing options,improving its financing efficiency,governance efficiency,and research and development capabilities,and improving the overall financial situation of Cayman Daquan,which is conducive to their long-term development.