Chinese Concept Stocks Return To The "Dual Listing + Introduction Listing" Model Research

Affected by the risk of shorting and the tightening of US supervision of Chinese enterprises,Chinese concept stocks listed overseas have returned to the domestic capital market in order to reduce risks and enhance the stability of development.In 2022,HKEX will allow companies with different voting rights structures to maintain their original structure for direct dual listing,and allow dual-listed companies to be included in Hong Kong Stock Connect under certain conditions.Subsequently,Shell Holdings was successfully listed and became a Chinese concept stock enjoying the benefits of the new regulations.In addition,Shell Holdings chose the square method of introduction listing,which is different from the traditional IPO listing,and has become the first Chinese concept stock to return to the "dual listing + introduction listing" model.The dual listing model quickly attracted the attention of Chinese concept stock returning companies,and the number of companies returning to Hong Kong for dual listing increased,and companies that had already been listed in Hong Kong,including Yum China and Alibaba,announced that they applied for voluntary conversion to dual listing.Among the enterprises returning to Hong Kong’s dual listing,introduction listings have also begun to be selected by more Chinese concept stocks.Therefore,studying the return mode of "dual listing + introduction listing" of Shell Holdings is of great significance to the return of Chinese concept stocks.This paper takes the first Shell Holdings Limited to return using the "dual listing+ introduction listing" model as an example to conduct research on dual listing.First of all,a brief introduction to the company profile and dual listing process of Shell Holdings,which is further divided into IPO listing in the United States and dual listing back to Hong Kong.Secondly,the motivation of Shell Holdings to choose to return to the domestic capital market is analyzed,and it is believed that the motives include four factors: avoidance of potential risks,undervaluation of the company,favorable market timing and strategic needs of enterprises.Furthermore,on the basis of the structure of Shell Holdings with different voting rights,how to decide the "dual listing +introduction listing" return mode and model construction arrangement under this structure is analyzed.Through the comparative analysis of the return to the listing model,it is found that the "dual listing + introduction listing" model of the Hong Kong capital market is more in line with the actual situation of Shell Holdings.Then,using the event analysis method and financial indicators to analyze the economic effects brought by the regression model of Shell Holdings’ dual listing,it is found that dual listing can bring positive market effects,improve corporate valuation and stock liquidity.At the same time,the profitability,solvency,development ability and operating ability of Shell Holdings have been improved to a certain extent after the dual listing.In addition,based on the above research,the different voting rights structure of dual-listing retention and the risks associated with dual-listing mode are analyzed,and dilution methods are proposed for risks.Finally,the feasibility of the "dual listing +introduction listing" model is analyzed,and the popularization,application and development prospects of this model are explained.