Research On The Causes And Economic Consequences Of Xueda Education Group’s Return To A-share

In the 1990 s,many Chinese companies could not meet the requirements for domestic listing.In order to go public as soon as possible,many domestic companies sought overseas market listing and financing.These companies that were listed overseas but had actual business premises in China were referred to as "Chinese concept stocks".However,since 2010,due to frequent short selling of Chinese concept stocks overseas,a credit crisis has erupted in Chinese concept stocks,leading to a significant decline in their stock prices and undervaluation of the company’s value.Many Chinese concept stock companies have suffered heavy losses and have been delisted one after another.At the same time,the domestic capital market has entered a period of rapid development with valuations that surpass those of foreign capital markets.The environmental differences in domestic and foreign capital markets have led to an increasing number of Chinese concept stock companies returning to the domestic market,and a wave of privatization of Chinese concept stocks is forming.Xueda Education is a rare Chinese concept company that returns to A-shares through direct acquisition by A-share listed companies.Taking Xueda Education’s return to A-shares as a case study,the topic is relatively novel,and studying its reasons for return,path selection,and economic consequences after return has practical significance.This article analyzes the return of private education to the A-share market as a case study.After summarizing the basic situation of private education to the A-share market,it provides a deep analysis of the process of private education to the A-share market.Then,after explaining the reasons for the return of private education to the A-share market,it analyzes the influencing factors for choosing this return path;Finally,conduct a study on the market performance,financial performance,economic value added,and non-financial performance of Xueda Education after its return to the market,and analyze the economic consequences of returning to the market for Xueda Education.According to research findings,the company’s stock price improved in the early stages of the return of Xueda Education to the public market,but due to a decline in profitability,loss of control by the founder,and the risk of debt default and delisting,the long-term economic consequences were poor.At the end of the article,a summary of the cases elaborated in this article is made and targeted suggestions are put forward.This thesis draws the following research conclusions: Xueda Education,a mode of acquisition by listed companies,can help Chinese concept stock companies that cannot meet the requirements of IPO listing and Reverse takeover to return to the market quickly,and can help Chinese concept stock companies to increase their market value in the short term after return,but should pay attention to the impact of return risk and long-term economic consequences,and not take whether they log in A-share as the basis to judge whether the return to the market is successful.For Chinese concept stocks planning to return to the A-share market,multiple factors should be weighed to choose the most suitable return path.