Research On The Causes,Paths,and Economic Consequences Of The Return Of Chinese Stock To Listing

Due to the strict listing rules,complex process,low stock liquidity,and weak financing ability in the early domestic market,some domestic enterprises rushed to foreign markets for listing in order to raise funds.These enterprises are also known as the first batch of "Chinese concept stocks.".As more domestic enterprises go overseas for listing,the tide of listing of Chinese shares has gradually formed.However,due to differences in domestic and foreign market rules and regulations,the impact of financial fraud on certain Chinese equity stocks has led to frequent short selling events in Chinese equity stocks,and increasingly stringent regulatory mechanisms in foreign markets.As a result,the stock price of Chinese equity stocks has plummeted,their market value has evaporated significantly,and uninvolved Chinese equity stocks are also "taking precautions";With the gradual expansion of China’s domestic capital market and the increasingly mature market mechanism,some Chinese equity companies have chosen to return to domestic listing in order to seek better development.This article selects Shell Holdings as a case study object to study its listing in Hong Kong.This article first analyzes the reasons for Shell Holdings’ return to listing,and then analyzes its path selection for return to listing.Then,it uses the event study method to explore the market reaction after the return to listing,and compares financial and non-financial performance before and after the return to listing.Finally,based on the analysis,it draws conclusions and inspiration.This study finds that the main reasons for Shell Holdings’ return to the market are the delisting risk caused by different domestic and foreign mechanisms,the significant evaporation of Shell Holdings’ market value due to short selling,and the need to fit Shell Holdings’ future development strategy;In terms of the path to return to listing,it is concluded that the best path for shells to return to domestic listing is to adopt a combination of dual main listing and introduction listing methods;In terms of economic consequences after the return to listing,it was found that the market reaction to the return to listing of Shell Holdings was positive,and financial performance improved after the return to listing.In terms of non-financial performance,the market strategy of Shell Holdings continued to advance after the return to listing.The innovation of this article is based on the above conclusions,providing more important reference value and significance for other Chinese equity stocks that are awaiting return to the market.