Research On The Motivations And Effects Of Secondary Listing Of Chinese Concept Stocks In Hong Kon

As of today,about 280 Chinese companies are listed on U.S.stock exchanges,in recent years,due to the economic and trade conflicts between China and the United States,China Concept stocks are subject to stricter regulation in the United States,and the short selling tide against China Concept stocks makes China Concept stocks suffer a crisis of confidence,prompting those stocks led by Alibaba to return to Hong Kong for secondary listing,and Net Ease returns as the second.In the next few years,there will be more than a dozen Chinese companies returning for secondary listings.In this background,it has become a trend to return to Hong Kong for secondary listings.As a result,there will be many Chinese companies going for secondary listings in the next few years.Since the policy of secondary listing of China Concept Shares in Hong Kong has been implemented for a short time,there is a lack of research on this behavior at home and abroad.Therefore,this paper can enrich the research cases and provide references for the return of China concept shares to a certain extent.Domestic scholars’ research on the regression of Chinese concept shares focuses on the listing of A shares and A+H shares after privatization and delisting,and analyzes the motivation,path and effect of the regression.Only a few literatures have analyzed the external motivation of the return of Chinese concept stocks to Hong Kong stocks and secondary listing,and due to the short practice time and few research cases,there is a lack of research on the effect after secondary listing.Through the regression case of Net Ease Group,this paper aims to study the internal motivation and results of regression,so as to lay a theoretical foundation for others to further analyze this regression model.This thesis finds that the external motivations for Net Ease’s secondary listing are that China Concept Stock suffered a crisis of confidence in the United States,the economic and trade conflict between China and the United States intensified,the Foreign Company Accountability Case intensified the panic sentiment of China Concept Stock,the Hong Kong Stock Exchange relaxed the requirements for secondary listing,and Alibaba’s secondary listing in Hong Kong provided a demonstration role for Net Ease.The internal reason is that competition in the domestic game market is fierce,and its game business has been suppressed by Tencent,coupled with the government’s restrictions on game licensing.And Net Ease needs to speed up the process of game going to the sea.The development of online music industry and online education industry has entered the fast lane,and Net Ease needs to strengthen its position in these two businesses and promote itself to enhance competitiveness.After the secondary listing of Net Ease in Hong Kong,the short-term market reaction has produced a positive excess rate of return,and the market is optimistic about the development of Net Ease.In terms of financial effect,this thesis analyzes the effects of secondary listing on solvency,profitability,operating capacity and development capacity,finding that short-term solvency is enhanced,while long-term solvency is basically unchanged.The profitability has been enhanced,the operating capacity is basically not affected by the secondary listing,the development capacity has been improved,and Net Ease Cloud Music mainly created more revenue growth points.In terms of non-financial effects,secondary listing reduces the risk of being delisted,expands financing channels,strengthens financing ability,and enhances the competitiveness of main businesses.The innovation of this thesis is that studies are relatively few on the return of Chinese concept stocks to Hong Kong for secondary listing,and the Internet industry specific indicators used to reach the conclusion are active users,paying users and so on.