Study On The Motivation,Path And Performance Of Alibaba’s Return

Chinese concept stocks originated from the early immature capital market in China.Due to some limitations in the domestic capital market,many VIE structured internet and innovative companies choose to list overseas.Starting from 2018,the relationship between China and the United States has been tense,and US regulation has tightened;In September 2018,the PCAOB website published a list of companies with audit inspection obstacles,involving many companies in Chinese Mainland or Hong Kong;The Foreign Company Accountability Act poses greater delisting risks for Chinese concept stocks.At this time,the Hong Kong Stock Exchange carried out institutional reforms and flexibly lowered the listing threshold for some companies.Against this backdrop,Alibaba became the first Chinese concept stock enterprise to land on the main board of the Hong Kong Stock Exchange for a secondary listing.This article first analyzes the research background,purpose,and significance,and summarizes the research progress of domestic and foreign scholars.Secondly,briefly elaborate on relevant concepts and theoretical foundations.Once again,it introduced the overview of the Chinese concept stock market and conducted a study on the case of Alibaba’s return to Hong Kong stocks.The study mainly focused on three parts:motivation,path,and performance:a comparative analysis of the reasons for its overseas listing and secondary listing of Hong Kong stocks,the choice of path,and the specific process;The key content of the chapter is the research on the performance of Alibaba’s return to Hong Kong stocks.Using factor analysis and financial indicator analysis methods,comprehensively analyze the financial performance of Alibaba and other secondary listed Chinese concept stock enterprises;The event study method is used to analyze the market reaction and non-financial performance of Alibaba’s return to Hong Kong stocks.It can be concluded that after Alibaba’s return to the Hong Kong Stock Exchange,the short-term market effect is significant and the stock price has increased,but the long-term effect is average;In theory,a secondary listing can have a positive impact on corporate performance through significant financing effects.However,Alibaba has only significantly improved its debt paying ability,while other aspects of performance have not been significantly improved due to the pandemic and the lack of returns on investment in multiple fields.Finally,the conclusion is drawn from the case analysis,and inspiration and suggestions are proposed for Alibaba,other Chinese concept stocks,and regulatory authorities.It is hoped that this study can provide reference for other Chinese concept stock companies that wish to return.This article takes Alibaba as an example and combines the secondary listing of Chinese concept stocks to study the motivation,path,and impact on corporate performance of enterprises going to Hong Kong for a secondary listing.This can not only enrich relevant case literature,but also summarize experience,and provide suggestions and reference for other enterprises.