The Path And Performance Analysis Of The Return Of Chinese Concept Share To STAR Market

The rapidly changing capital markets all the world have continuously promoted the reform and improvement of the system.At the end of the last century,due to the high threshold for domestic A-share listing,many enterprises had chosen to go overseas to obtain financing to meet their development needs.In recent years,as foreign governments have continuously introduced restrictive policies,and shortseller have repeatedly targeted Chinese concept shares,many Chinese concept shares are facing a "survival crisis" and have chosen the path of privatization before returning to China for listing.At the same time,China’s capital market is also continuously developing and improving.The STAR Market has brought registration,which also provides more alternative paths for the return of general shares to A-shares in overseas listings.The applicable regression paths for Chinese concept shares vary depending on the industry and specific situation.It is hoped that relevant suggestions can be provided for the motivation evaluation before the return,path selection during the return,and operation and management after the return of Chinese concept shares overseas at this stage.This article selects ACMR(Shanghai),a spinoff subsidiary of ACMR,as a case to conduct in-depth research on its return motivation,return path selection,related risks,return impact,and performance.Firstly,this paper reviews the previous theories and literature,and reviews the existing research basis for the motivation,path selection,and performance of the return of Chinese concept shares to listing.Secondly,combine the case company’s own situation and market background to sort out the reasons for the return of the case company.Thirdly,the paper compares the advantages and disadvantages of different regression paths that the case enterprise can choose,evaluates the most suitable regression path for the case enterprise,and analyzes the relevant risks.Finally,the paper studys the impact and performance of the company after its return from four aspects:governance dimension,competitiveness dimension,financial dimension,and value dimension.The main research conclusions are as follows:(1)The main reasons for companies to decide to return to China for listing include financing needs,enhancing domestic market awareness,avoiding market risks,and increasing the company’s market value.(2)The company can choose privatization,IPO,issuance of CDRs,and spin-off listing for its return.The subsidiaries of the case company have stable profits and huge development potential,and the overall process of choosing a spin-off listing is simple;At the same time,a split listing may also cause risks such as equity structure,dual listing,and related party transactions.(3)After the return of the company,the level of corporate governance and overall competitiveness have greatly improved,R&D output has continuously improved,and market sales,market share,and customer base scale have further expanded.After the company’s listing on the STAR Market,its financial level has significantly improved,and its solvency and profitability have increased.After its listing,it has continuously developed new technologies,greatly improving its growth ability.In the short term,the shareholders of the ACMR have obtained certain excess returns,and in the long term,the market value has improved.The valuation and stock price level of ACMR(Shanghai)after listing are good.The main recommendations are as follows:(1)The reasons for the return of Chinese concept shares to listing can be analyzed from factors such as financing needs,industry development,changes in the regulatory environment,and differences in valuation at home and abroad.(2)In terms of the choice of the return path,Chinese concept shares should make a choice based on its own organizational structure and equity situation.(3)After the return of Chinese concept shares,we should also make good use of various resources brought about by the listing,improve our own management policies and business strategies,and constantly adjust in line with market changes to maximize shareholder value.The research value lies in the fact that there are more diverse paths to choose from in the probability stock regression,but there is currently less relevant literature to study the advantages and disadvantages of different paths.The research in this article fills the relevant gaps.The risks involved in the spin-off and return of ACMR(Shanghai)and the performance after the return can also provide reference and reference for those who want to spin-off and return to the STAR Market.