| Due to the earlier development of foreign capital markets and better systems,many companies have chosen to raise capital abroad since the 1990 s in order to meet their own capital needs,setting off a wave of offshore IPO boom.The passage of the Foreign Company Accountability Act in 2020 made the financing environment for Chinese stocks even more uncertain,and they even faced the danger of being forced to delist,which further catalyzed the return of Chinese stocks to the domestic capital market.further catalyzes the return of Chinese stocks to their home countries.However,the return of Chinese stocks is not only an opportunity,but also a challenge.There are many uncertainties and potential threats as to whether the return of Chinese stocks will be successful and whether their value will be recognized after the return.In recent years,with the gradual improvement of the relevant domestic system and the corresponding policy support for the return of Chinese stocks,the barriers to the return of Chinese stocks to the domestic capital market have been gradually removed,and more and more Chinese stocks have realized their return in different forms.When to return to the domestic capital market has become an important choice for Chinese companies,and at the same time,what path Chinese companies take to return is also an issue that needs to be treated with caution.This paper takes SMIC’s return to A-share as a case study,analyzes the motivation,path and economic benefits of SMIC’s return to A-share,and proposes specific countermeasures in three parts: from mid-cap companies,investors and regulators.This paper finds that: from the motivation of the return of Chinese stocks,the national policy support,the new channel provided by Sci-Tech,the low performance of Chinese stocks in the U.S.stock market,and the avoidance of trade friction and regulatory risks are all important motivations for the return of Chinese stocks.From the study of the paths of the return of Chinese stocks,SMIC has chosen the way of delisting and privatization and IPO listing on the Science and Technology Venture Exchange among many return paths,and has experienced a series of paths from NYSE delisting,downgrading to the OTC market,IPO listing on the Science and Technology Venture and exit from the OTC market to finally complete its return.From the analysis of market reaction,the cumulative excess return(CAR)of SMIC’s return event window is 82.028%,which is significantly higher than the market effect brought by the return of most Chinese stocks to A-shares in the past,meanwhile,the A-share and H-share markets also show positive response to SMIC’s return.It indicates that the return brings solid wealth growth for both the company and its investors,and fulfills its return motive well.Finally,the profitability,solvency,growth and operating capacity.Finally,through the analysis of SMIC International’s financial capabilities-profitability,debt repayment ability,growth ability,and operational ability-it was found that after the regression,SMIC International’s financial capabilities have significantly improved,and its overall financial performance is healthy and improving;In terms of non-financial aspects,SMIC’s financing environment,government enterprise relations,research and development investment,and market share have also been improved.Meanwhile,the review of the SMIC returns process shows that there is a dynamic relationship between Chinese stock returns and Chinese capital market regulations,which interact with each other,and that the relevant regulations have gradually improved under this relationship. |
