Research On The Motivation And Economic Consequences Of The "VIE+CDR" Listing Method

In the 1990 s,a flourishing scene of the Internet industry in our country,but because at that time there were more requirements for listing and high standards,a large number of enterprises chose to list in overseas market.Since the beginning of the 21 st century,with the continuous deterioration of foreign financing environment,such enterprises have suffered a great negative impact,and more and more public enterprises listed overseas begin to want to return to domestic listing.At the same time,our market economy is booming and the capital market is gradually improving.The domestic listing policies also continuously open.Favorable policies attract a number of red-chip enterprises registered overseas but not listed yet to give up overseas financing plan and gradually return to the domestic listing.Generally speaking,the road of traditional return of red chip enterprises is divided into three steps,that is,privatization delisting→dismantling of red chip structure→IPO listing.However,instead of following this traditional path,Segway-Ninebot chose to go public for the first time by issuing Chinese Depositary Receipts("VIE+CDR")on the basis of maintaining the VIE structure and achieved success.Using the method of case study,this thesis first analyzes the status quo of red-chip enterprises to go public in China,and then selects the Segway-Ninebot listed by issuing CDR as the case object to analyze the process,motivation and economic consequences of its listing on the Science and Technology Innovation Board by VIE+CDR.Through the research,it is found that:(1)the support of national policies,avoidance of tax problems in the process of VIE dismantling structure and the large difference in valuation between Chinese and foreign markets promote Segway-Ninebot to choose the VIE+CDR to go back to China for listing;(2)Through the analysis of four dimensions of financial indicators including profitability,solvency,operating capacity and development capacity,and the use of factor analysis for comprehensive financial analysis,it is found that the financial results of Segway-Ninebot after listing have been significantly improved.(3)The non-financial results of the Segway-Ninebot company also improved after listing,including the improvement of R&D capability,the enhancement of market powerand ensuring the implementation of strategic layout.Based on the research results of this thesis,the thesis finally puts forward corresponding suggestions to the overseas issuing bodies,investors and regulatory agencies of red chip enterprises.Through the study of Segway-Ninebot,this thesis can more intuitively and comprehensively reflect the impact of "VIE+CDR" listing on the economic consequences of enterprises,which can provide reference for other Red-Chip enterprises planning to go public in China.