Research On The Listing Performance Of China Concept Stocks “Privatization And IPO”

Under the frequent sniping of foreign short selling institutions,China Concept Stocks face a crisis of trust,coupled with information asymmetry,the share price of China Concept Stocks sharply declined,the market value of the enterprise fell sharply;After the U.S.Senate passed Holding Foreign Companies Accountable Act,the situation for China Concept Stocks is even more difficult.In contrast,in China,the capital market has been increasingly improved,the financing environment has been constantly optimized,the relevant departments have frequently carried out institutional changes to embrace the return of overseas China Concept Stocks.In this context,based on the Under Valuation Theory,Transaction Cost Theory and Signalling Theory,this paper establishes the mechanism analysis of the impact of privatization and IPO on company performance: the regression model of privatization and IPO mainly improves company performance by changing the current situation of undervalued company’s value,reducing listing cost and releasing good news.In this paper,Mindray is selected as the case of the return of privatization and IPO.Firstly,this paper briefly introduces the general situation of the company,and reviews its privatization delisting,dismantling of the red chip structure,IPO listing process.Then,in order to verify the theoretical mechanism of this paper,this paper uses qualitative and quantitative research methods to analyze the financial performance and short-term and long-term market performance of Mindray privatization and IPO.In order to improve the accuracy of the conclusion of this paper,all privatization and IPO companies of China Concept Stocks are selected for multiple case studies to further verify whether the privatization and IPO listing method can improve company performance.On the basis of theoretical mechanism,taking Mindray as an example,this paper analyzes the reasons for the improvement of privatization and IPO company performance from four aspects: avoiding short agency sniping,implementing the company’s strategic adjustment,realizing the company’s value revaluation and reducing the listing maintenance cost.Finally,based on the actual situation,combined with the research results of this paper,to provide reference suggestions for China Concept Stock companies,market regulatory authorities,the majority of market investors.Conclusions:(1)Mindray’s financial performance improved after privatization and IPO.Specifically,profitability,solvency,asset operating capacity and growth capacity have improved.(2)Mindray’s market performance improved after privatization and IPO.Mindray has excellent short-term market performance and strong long-term market performance after privatization and IPO.(3)The performance of China Concept Stock companies has been improved to varying degrees after privatization and IPO.The financial performance of privatization and IPO companies after their return to A-share market has been improved to varying degrees.In addition to Trina Solar Co.,Ltd,the short-term market performance of privatization and IPO companies is excellent.The long-term market performance of privatization and IPO companies shows an increasing trend.