Research On The Domestic Listing Model Of Red Chip Enterprises "VIE+CDR" STAR Market Study

In the early days,due to the immaturity of our country’s capital market,companies listed in China had to face a series of problems such as long listing time and high threshold.Therefore,high-tech Internet companies such as Sina and Baofeng Technology choose to build a red-chip structure to become a red chip enterprise and go to overseas listings.However,with the continuous improvement of the domestic capital market and the introduction of policies such as "Document No.21" and "New Regulations on the Science and Technology Innovation Board" by the management for the return of red chip enterprises,the threshold for domestic listing of red-chip companies has been lowered,more and more overseas red chip enterprises have begun to put "return domestic capital market " on the agenda.Generally speaking,the traditional "return domestic capital market " path of red chip companies is divided into three steps,that is,privatization and delisting first,then dismantling the red chip structure,and finally IPO listing.However,Ninebot Limited innovatively used the "VIE+CDR" domestic listing model on the Science and Technology Innovation Board for the first time,so it is of important realistic meaning to research the motivation,requirements and impact of using this model to achieve domestic listing.This thesis chooses the research method of case analysis,and makes a detailed introduction and analysis of the domestic listing case of Ninebot Limited.Introduced the relevant subjects,relevant conditions and listing process of Ninebot Limited’s listing,made a general analysis of the mode of red chip enterprises choosing "VIE+CDR" to go public on the Science and Technology Innovation Board,and then made a special analysis from the perspective of Ninebot Limited.It is concluded that this model is feasible and worthy of promotion.Then it analyzes the motivation of Ninebot Limited for choosing this listing mode,its success conditions,and its influence.Through analysis,it is found that:(1)saving money and time,retaining Variable Interest Equity to avoid tax problems,the convenience of the registration system of the Science and Technology Innovation Board,the high price-earnings ratio of the domestic capital market and some favorable policies are the main motivations;(2)The improvement of the company’s own operation and external environment is the basis for a successful listing;(3)after the listing,the financial indicators of Ninebot Limited have also been improved,and the market has responded greatly to this feat,but it also brings potential risks such as the control risk of retaining the Variable Interest Equity,the price fluctuation risk of CDR,and the protection of investor rights and interests.,it needs to attract the attention of red chip enterprises that want to go public by issuing CDRs in the future.Based on the introduction and analysis of the case,this thesis provides some suggestions for red chip enterprises to return to domestic listing: red chip enterprises should focus on financial indicators such as operating income,valuation,and net profit,and simultaneously,they should also pay attention to the company’s core patent ownership,research and development Indicators such as the proportion of personnel,the market share of main products,and the proportion of overseas income;red-chip companies that choose to issue CDRs should choose whether to retain the Variable Interest Equity,special voting rights structure,option plans,etc.Potential risks are taken into account.