| In recent years,with the reform of China’s capital market and the development of the national economy,high-quality Chinese concept stocks have continued to emerge.Restricted by the "high threshold" of China’s capital market,some companies actively seek overseas listings to achieve financing purposes.Such companies are called Chinese concept stocks.Since 2011,the overseas capital market environment has been constantly changing,Chinese concept stocks have encountered undervaluation of market value,institutions have shorted,etc.,some Chinese concept stocks have chosen to return to the Chinese capital market.There are many paths in the process of the return of China Concept Stocks.Which path to choose and whether it meets expectations after the return is very important for China Concept Stocks.The difference in the choice of paths will affect the return timing,return progress and return effect,and even affect the company’s future development and capital operation.This paper mainly focuses on information asymmetry theory,valuation theory,and priority financing theory,etc.,to explore the two paths of Trina Solar’s IPO return and JA Solar’s backdoor return.First of all,by sorting out the development and return to the status quo of Chinese concept stocks,it is found that there are more than 160 Chinese concept stocks that have been privatized and delisted,but a minority of them have successfully returned.Secondly,analyze the reasons for the return of Trina Solar and JA Solar.Comparing the market value and price-earnings ratio of related industries,the maintenance cost of U.S.stock market listing,industry status quo and A-share policy,it is found that the main reasons for the privatization of the two are the undervaluation of U.S.stock market,domestic policy-driven,limited financing,and short-selling by institutions.Furthermore,regarding the return path of Trina Solar and JA Solar,we will analyze the privatization method,price changes of the offer and the source of funds for their privatization and delisting.Dismantle the VIE structure from the manager’s equity transfer and capital increase analysis.From the regression method and sector selection of the return to A shares,this paper analyzes the selection basis for the two to choose backdoor listing and IPO on the Science and Technology Innovation Board.It is concluded that JA Solar will return to A shares by backdoor method,which reduces financial costs and time costs compared with IPO,and has suitable shell resources.The Trina Solar IPO on the Science and Technology Innovation Board,combined with the new listing system,reduces listing costs and is more in line with large financing needs and its own development strategy.Finally,the effect of the return of Chinese stocks is studied.Based on the event research method,enterprise value comparison,and analysis of financial indicators,it is found that the market value and price-earnings ratio of JA Solar and Trina Solar have increased after the return,the financing channels of the enterprises have increased,the financial risks have decreased,and the overall operating capacity has been enhanced,which is in line with the expected effect of the return.The main contribution of the research in this paper is to provide reference suggestions for the selection of regression paths for photovoltaic companies and other Chinese concept stock companies to be returned,and to verify whether the Chinese concept stock regression can meet expectations.It is believed that the photovoltaic China concept stocks should prefer the IPO of the science and technology board to return to A shares,and the China concept stocks need to comprehensively choose the return plan according to the company’s own situation,and judge the trend of market policy changes,in order to achieve the company’s sustainable development after listing.Relevant regulatory authorities should improve my country’s multi-level capital market system and create a more complete development environment for the return of Chinese stock companies. |
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