Analysis On The Motivation And Economic Consequences Of Wuxi Apptec’s Spin Off And Return To The Domestic Market

Since the 1990 s,Chinese enterprises have chosen to list in the United States due to the attraction of different rights of the same share in the U.S.capital market,low listing requirements and high registration efficiency.However,in 2011,it encountered a large number of concentrated short selling,resulting in a huge crisis of trust and difficult market survival.China concept stock companies in the U.S.capital market have delisted through privatization.At the same time,there have been frictions in China US economic and trade relations in recent years,and the situation in the U.S.capital market has become more and more difficult.By the end of July 2021,a total of 102 Chinese stock companies had been successfully delisted or privatized.Most companies adopting the "public private public"(PPP)strategy chose the opportunity and method to re list in the domestic market.However,with the sudden change of domestic regulatory environment and the particularity of Chinese stock companies,Many zhonggai companies that have been privatized have failed to return to the domestic capital market in time.Among them,there are many powerful companies.The successful return of these enterprises will bring new vitality to the domestic capital market,expand overseas markets,and then implement the strategy of "going out".Wuxi Cayman is also a member of the return wave of privatization,adopting a new way of return,that is,spin off and listing.The first step is to spin off the undervalued macromolecular business and list it on the new third board in China.The second step is to peel off the macromolecular business Yaoming biology and list it in Hong Kong.Finally,Yaoming Kant is listed on the A-share main board.Yaoming Kant’s "one split three" to different domestic markets has its particularity and universality,as well as good research value.In view of this,this thesis makes an in-depth discussion on the spin off and return of Wuxi Cayman to the domestic market.Firstly,it analyzes the basic situation and split process of Wuxi Cayman,and then analyzes the listing motivation of "one split and three" of Wuxi Cayman;Thirdly,it will analyze the market performance and financial ability of Wuxi Cayman after the split listing,and finally summarize the experience of Wuxi Cayman’s split and return to the domestic market listing,in order to put forward reference suggestions for zhonggai shares and domestic regulators who want to return in the future.Relevant conclusions are drawn through analysis.Firstly,the motivation of Wuxi apptec’s return is as follows: on the one hand,for its own and external reasons,the company has determined the intention of return,and the market value of the company is underestimated;High listing maintenance costs;The need for strategic adjustment of the company;To meet the increasing financing needs of enterprises to expand their business,the domestic capital market environment is getting better and better,a series of laws and policies have been issued,and the technical conditions have been continuously improved.The domestic cro industry still has great room for expansion.After determining the intention of return,on the other hand,out of the understanding and analysis of the domestic capital market,we chose to be listed in different markets according to our own situation.Secondly,after analyzing the market performance and financial ability of the enterprises after the return,it is considered that the stock prices of the three enterprises have increased to varying degrees after the listing,and Yaoming biology and Hequan pharmaceutical have generally improved the market performance of Yao Ming Kant after the listing event;In terms of financial ability,it is found that the profitability,solvency and development ability of the company have been improved,but the impact on operating ability is not prominent.Finally,through the successful experience of Wuxi apptec after the split and return,this paper puts forward some suggestions on the aspects that enterprises should choose their own return path,reasonably choose the way of split listing,aim at the time of split listing,regulators should strengthen supervision and improve the multi-level capital market support system.