Research On The Impact Of The Establishment Of STAR Market On The Return Of Red-Chip Enterprises From The Perspective Of Institutional Innovation

As the instability of the world economic situation intensifies,the return and development of China’s red-chip enterprises has once again aroused attention.All long,red-chip enterprises have been facing a series of complicated processes such as privatization and dismantling of the offshore control structure if they want to return to the A-share market.It was not until 2018 when the State Council issued the Document NO.21 that the policy and regulatory guidance was adjusted to create more convenient conditions for the return of red-chip enterprises to the A-share market.The STAR Market subsequently became the first board in China to explicitly allow direct listing of red-chip enterprises without dismantling their offshore control structure,and immediately issued a series of supporting rules and guidelines to make innovative institutional arrangements for the specific characteristics of red-chip enterprises.What are the innovative institutional designs of the board for the return of red-chip enterprises?How do these institutional designs facilitate the process of returning to A-shares?Does it pose potential risks?Is attracting the return of red-chip enterprises conducive to the positioning and objectives of STAR Market in promoting the innovation and high-quality development of technology-based enterprises?To address the above four questions,we select a case study of CRM,the first red-chip stock on STAR Market,to analyze the mechanism and effect of the macro-institutional factor of the innovation of the listing system of STAR Market on the behavior of the micro-entity,which is the return of red-chip enterprises.The case subject has the following two characteristics:1)peer representation.CRM,as the first red-chip stock on the board,belongs to the semiconductor chip industry,which has a prominent national"bottleneck" problem,and has significant representative features for the return of red chip enterprises,such as retaining the red-chip structure,using Hong Kong dollars as the issue par value,and adopting the overallotment option.The analysis of this case helps to fully reveal the innovative institutional design of the board for the return of red-chip enterprises.2)Behavioral Significance.Before the establishment of STAR Market,CRM originally planned to list its shares in Hong Kong and then in A-shares,but after the establishment of STAR Market,the company switched to the board directly.We collect,summarize and analyze the system design of the board through case study method,literature research method,comparative analysis method and data analysis method,and analyze the listing process of CRM,and draw the following conclusions:1)the establishment of the board attracts the return of red-chip enterprises,specifically through specific system innovations such as allowing the retention of red-chip structure,using Hong Kong dollar as the issue par value and introducing overallotment option,which act on the return process of redchip enterprises 2)the institutional innovation of the board is also prone to potential risks such as creditor and minority shareholder protection,internal control deficiencies,and inadequate comparability of accounting information;3)the innovative behavior of enterprises is effectively stimulated after the board attracts the return of red-chip enterprises,specifically in terms of R&D investment and output,technology-based investment and M&A,and innovative organizational management.Finally,we suggest that the regulators in China should be inclusive and prudent,continuously optimize the design of institutional innovation,and give more highquality red-chip enterprises the institutional convenience to return while avoiding risks;through strengthening the institutional supply of the capital market,increase the determination and confidence of enterprises to make breakthrough technological innovation in key core technology areas,reduce their technological dependence on foreign countries,and build the core competitiveness of Chinese enterprises;investors should take into account the growth and risk of red-chip enterprises,make scientific research and judgment,and invest rationally;redchip enterprises should base on their own development needs,make good use of the institutional advantages of the capital market,grasp the timing of listing,and make reasonable listing decisions.