Research On The Motivation And Economic Consequences Of Segway-Ninebot Company’s Issuance Of CDR

In the past,due to high listing standards,cumbersome IPO approval processes,and long waiting times in China’s capital market,many red-chip companies chose to go public overseas for financing.However,with the development of China’s capital market and policies,an increasing number of red-chip companies are considering returning to the domestic market.On the one hand,the market value of red-chip companies listed overseas is generally underestimated.This is because red-chip companies listed overseas are not subject to the supervision of the domestic stock market,and their valuations are not recognized by domestic investors.On the other hand,returning to the domestic market can help red-chip companies better interact with domestic investors,increase their recognition in the domestic market,and thus obtain higher valuations.In terms of policies,the Chinese government has been making efforts to support red-chip companies in returning to the domestic market.The China Securities Regulatory Commission has issued "Several Opinions on Pilot Programs for Innovative Enterprises to Issue Shares or Depositary Receipts in the Domestic Market," aimed at supporting and encouraging red-chip companies to retain their red-chip structure and list on the domestic market through issuing shares or depositary receipts.It is expected that more and more red-chip companies will choose to return to the domestic market in the future,which will have a positive impact on the development of China’s capital market and red-chip companies’financing.Therefore,researching issues related to red-chip companies’ listing in the domestic market is particularly important.This paper takes the innovative issuance of China Depositary Receipts(CDRs)by Segway-Ninebot as a case study.Firstly,it reviews domestic and foreign literature,delving into the historical evolution and research frontiers of red-chip enterprises’domestic listing,depositary receipts,and related key points,to provide background information and lay a foundation for subsequent analysis.Secondly,it summarizes the research objectives of this paper,namely the main business and development history of Segway-Ninebot,and provides a relatively intuitive summary of the issuance process and results of its depositary receipts.It then analyzes in-depth the reasons behind Segway-Ninebot’s decision to issue CDRs to return to A-share market from both external and internal perspectives.In order to evaluate the correctness of Company Segway-Ninebot’s decision to issue CDRs for listing,this paper further analyzes the market effects after the issuance,the impact of CDR issuance on short-term and long-term financial performance,the impact on non-financial indicators,and the impact on the external environment.Through research,it is found that the market response to the CDR issuance by Segway-Ninebot was positive,the overall financial performance was improved,and the successful listing stimulated the work enthusiasm of the management team,improved management efficiency,helped the company integrate internal resources,expand sales channels,enhance financing capability,and optimize governance structure.These results demonstrate the superiority of CDRs when red-chip enterprises are listed.Finally,based on the research findings,this paper presents several suggestions for subsequent issuers,regulatory agencies,and investors,aiming to standardize the development of CDRs and benefit more people.