An Analysis Of The Causes,Paths And Effects Of The Return Of Chinese Equities

Due to the relatively slow development of China’s capital market in the early stage,the relevant supporting systems are not perfect,and the A-share listing requirements are strict and the review process is complex.A large number of enterprises choose to list in the overseas market.However,with the escalation of the Sino-US trade war,the conflict of information disclosure between China and the United States has exposed Chinese equity companies to greater compliance risks,and some Chinese equity companies have been frequently shorted and their market value has been underestimated due to their excellent performance,unclear overseas profit model,and unreasonable internal control.At the same time,a series of institutional reforms in the domestic capital market have created a favorable environment for enterprises to go public,and the return of the Chinese stock market has once again become the focus.In the three major paths of listing in Hong Kong,dual major listing needs to meet the regulatory requirements of both markets at the same time,and the cost of compliance is huge,which is not the key way to return to the Hong Kong stock market.As one of the new forces of domestic car manufacturing,Xiaopeng Auto will return to Hong Kong stock market with dual major listing in 2021.Based on this,this paper takes Xiaopeng Automobile as the case study object to explore the reasons for the listing of Chinese equity companies in Hong Kong,compare the advantages and disadvantages of three different paths,and focus on the comparative advantages of the dual main listing and the regression effect of this path,so as to provide some reference opinions for the return of Chinese equity companies.First,this paper reviews the previous studies on the regression of Chinese stock market,forms the theoretical basis of this paper,and constructs the research framework of this paper.Secondly,from the external environment,the domestic environment and the enterprise itself,analyze the reasons for the resurgence of the Chinese stock market and the reasons for listing in Hong Kong,compare the advantages and disadvantages of the various paths of the Chinese stock market in Hong Kong,and combine the development needs of Xiaopeng Automobile to explore the feasibility of its dual listing.Finally,the paper analyzes the short-term and long-term effects of the dual listing of Xiaopeng Automobile,and draws the final conclusion,which provides suggestions and reference for the return route for the mid-sized shares that want to go to Hong Kong for listing in the future.The main conclusions of this paper are as follows:(1)From the perspective of the return motivation,the listing of Xiaopeng Automobile in Hong Kong is the result of the joint action of the uncertainty risk brought by the US stock sanctions and its own financing needs,which minimizes the uncertainty risk brought by the regulatory conflict between China and the United States,and the maturity of Hong Kong shares,the soundness of the mechanism,and the openness of foreign capital can better meet the financing needs of enterprises in the stage of rapid growth.(2)From the perspective of the return path,selecting the dual main listing of Hong Kong shares not only avoids the systemic risks faced by the listing of the single capital market,but also facilitates the free conversion of American Depositary Receipts(ADRs)and Hong Kong shares,so that Xiaopeng Auto can appropriately allocate some shares to the Hong Kong capital market under the worse survival environment of the US capital market(3)From the perspective of the return effect,The reaction of investors to the listing of Xiaopeng Automobile in Hong Kong is positive.A large number of investors subscribe to the company’s shares,resulting in a high issuance premium,and the funds raised are very considerable.It can be seen that the market has a positive attitude towards the future development prospects of the company.The innovation of this paper is that in terms of theoretical research,the dual main listing paths that this paper focuses on can further enrich the existing research results on the return of Chinese shares at home and abroad,and supplement the dual main listing case studies.In practical terms,the current new energy vehicle track is almost one of the largest and fastest growing tracks that can be seen in the global market,and the position of the Chinese market has become increasingly important.Xiaopeng Automobile has chosen to go to Hong Kong for dual listing,which shows that the enterprise focuses on the strategic route to achieve the long-term goal of sustainable growth and shareholder value maximization.This paper studies the return mode and effect of Xiaopeng Automobile,Try to provide reference for the return of new energy enterprises.