Research On The Motivation,path And Effect Of High Debt China Concept Stocks Returning To A-shares

China’s early capital market IPO review mainly adopted an approval system,which imposed stricter requirements on the qualifications of listed entities and financial accounting.This has a higher threshold for companies that want to go public.Since the 1990 s,some Chinese companies have chosen to go overseas to seek listing in order to solve financing problems.However,since 2010,China concept stock companies have been attacked from time to time by short-sellers,and their stock prices have also decreased.The performance of China concept stocks in overseas markets has deteriorated and has gradually been marginalized.In response to this,the Chinese government has continuously deepened reforms of the domestic capital market,and a multi-level capital market structure has gradually formed.In response to this,the Chinese government has continuously deepened reforms of the domestic capital market,and a multi-level capital market structure has gradually formed.In2019,the Sci-Tech innovation board was officially launched and the registration system was implemented.A group of high-quality Chinese concept stock companies such as Trinasolar,China Resources Micro,and SMIC seized the market opportunity to return to the embrace of the A-share market.In this context,it is of great research value to study the driving factors,the path of return,and the effect of the return of Chinese concept stocks based on recent cases of the return of Chinese concept stocks.Firstly,this paper analyzes the history and current situation of the return of Chinese concept stocks.On this basis,combined with the theory of market timing and resource dependence,it concludes that the common reasons for the return of Chinese concept stocks to A shares are the low valuation of the company and the rapid development of the domestic capital market.Then,this paper systematically summarizes the current alternative paths for China concept stock regression,and analyzes the advantages and disadvantages of different paths.It is concluded that in the selection of return paths for high-debt Chinese concept stocks,factors such as the return cost and time of each path,the listing restrictions of each path,and the capital market policy environment should be comprehensively considered in combination with their own conditions.In terms of market timing,it is a better choice for high-debt Chinese concept stocks to return through a registration-based IPO.This paper uses Trinasolar as a research case.Taking high debt as the research entry point,it conducts case analysis from three perspectives of regression motivation,path and effect.The research results show that the reasons for Trinasolar’s return under high debt mainly include business development and financing needs,high listing maintenance costs,serious underestimation of value,development of my country’s capital market and policy dividends of the domestic photovoltaic industry.By analyzing the path choices of all three stages of Trinasolar’s return to A shares under high debt,this paper believes that Trinasolar not only considers the company’s long-term development needs,but also focuses on the company’s short-term debt sustainability when returning.The selected regression path is more reasonable.As far as the return effect is concerned,this paper uses the event research method to study that the market has responded well after the return of Trinasolar.The performance in terms of financing and operation is in line with its return motivation.Although regression does not significantly reduce the risk of creditors,the possibility of creditors recovering the principal and interest is higher.In addition,the return of Trinasolar’s privatization has brought substantial benefits to major shareholders,and the return effect has performed well.In general,the return of Trinasolar has a typical exemplary role and reference value for other high-debt Chinese concept stock companies that are preparing to return to A-share.