Research On The Return Path And Performance Of Chinese Concept Stock Enterprises Under The Registration System

In the increasingly stringent US securities market,Chinese concept stocks listed in the United States are facing increasing challenges,and frequent short-selling behaviors have also made the position of Chinese stocks in the international market less and less stable.In the near future,more Chinese concept stock companies will choose to return.At the same time,the reform of the listing system in the capital markets of Hong Kong and the mainland has provided a diversified path for the return of Chinese concept stocks.In 2018,the Hong Kong Stock Exchange issued two new rules for the first time in the listing rules of "different rights for the same shares" and "Hong Kong can become a secondary listing place",and in 2019,President Xi Jinping officially announced the "Science and Technology Innovation Board" and carried out the pilot registration system,which undoubtedly provides a new plan for the return of Chinese concept stocks.Therefore,this paper chooses SMIC,the first "A+H" company to retain its red-chip structure and return to the STAR Board,as an example,and uses the case study method,literature analysis method,comparative analysis method and event research method to study the motivation,path selection and performance of its US stock delisting and re-listing on the STAR Board.Firstly,this paper sorts out the background and return status of overseas listing of Chinese concept stocks.Secondly,the motivation of the case company is considered from two aspects:internal and external factors;Then,when analyzing the path selection,the listing conditions and advantages and disadvantages of different capital markets are fully compared.Finally,in terms of performance analysis,the market response to the listing of case companies on the STAR Market,the changes in financial indicators and non-financial indicators of case companies after listing,and the innovation performance analysis system was used to consider the economic benefits of SMIC’s innovation after its return.Finally,conclusions are drawn and recommendations are made to other Chinese concept stocks,regulators and investors accordingly.The study finds that SMIC’s internal motivations for returning to listing on the STAR Board are the need for strategic development,broadening financing channels and being close to the mainland market to reflect its true value,while the external drivers are national industrial policy support,reducing listing costs,and avoiding short-selling crises.In terms of economic consequences,SMIC’s return to the STAR Board has received a warm response from the market,with growth in financial data,rapid development of key strategic sectors,increasing domestic market share,and outstanding growth in economic benefits despite a decline in investment and output in innovation performance.This incident also played a good role model for other Chinese concept stocks;At the same time,it has invigorated the mainland’s capital market and clarified the necessity of multi-level capital market construction and registration system reform.As the first "A+H" company to retain the return of red-chip structure,SMIC’s return path choice will become one of the mainstream choices for the return of Chinese concept stock companies in the future,which is highly referential and inspiring.Through the study of SMIC’s case studies,this paper enriches the theoretical research on the return path and performance of Chinese concept stocks,and also provides an experience reference for other Chinese concept stock companies,and provides inspiration for the formulation and improvement of relevant policies in the capital market.