Analysis Of Listing Path And Research On Financial Performance Of Red-Chip Enterprises Listing On Main Board Of A-shares

In recent years,under the background of Sino-US trade friction,the number of delisted and privatized Chinese concept companies has been increasing.By August 2022,159 out of283 concept companies listed in the US have been included in the list of pre-delisted companies by the US Securities and Exchange Commission,among which red-chip enterprises account for more than 97%.At the end of 2020,the SEC announced a ban on China mobile,China telecom and China unicom the red-chip enterprises such as trading stocks in the us market,the red-chip enterprise’s desire to return to the domestic capital market an unprecedented strong,along with our country allows overseas listed the red-chip enterprises listed on the domestic capital markets motherboard,the red-chip enterprises to return to broader way and how to choose the right path to return to,Has become the focus of attention of enterprises and investors.This paper takes China Mobile,the first to successfully return to the A-share main board without dismantling the red-chip structure,as the research object.Firstly,it briefly summarizes the structure,regression motivation and regression status of red-chip enterprises,and introduces the process and motivation of China Mobile’s return to A-shares from the micro level.Secondly,it introduces in detail the current path of red-chip enterprises returning to A-shares,and analyzes the adaptability according to the existing path.Finally,it concludes the reasons why China Mobile chooses its return path and the types of enterprises suitable for each path.Finally,from the four aspects of profitability,operation ability,solvency and development ability,this paper analyzes the changes of financial indicators after China Mobile’s return,and uses event analysis method to analyze the short-term market reaction after China Mobile’s return,and comprehensively summarizes its return effect.Through the research on the return of red-chip enterprises to the A-share capital market,the return paths of red-chip enterprises mainly include dismantling the red-chip structure return,spin-off listing,direct IPO and issuance of China Depositary Receipts.China Mobile chose the direct IPO motherboard return path,because the path has the highest matching degree with its own development status.The reasons are as follows:(1)Without dismantling the red-chip structure,the return cost is greatly reduced.The direct IPO listing process is clear,the operation is simple,there is no need for foreign exchange exchange,and the pre-IPO capital and time investment are small;(2)China Mobile is a leading enterprise in the technology,profitability and market value of the 14 pilot industries listed by China’s red-chip enterprises.Large state-owned holding enterprises with large scale,high market share and mature development can meet the requirements of all aspects of the main board listing;(3)The main board listing in the A-share market has a positive effect on enterprises,enhancing investor and market confidence and giving enterprises a higher market valuation.In addition,based on the analysis of the financial performance indicators and short-term market reaction before and after the return of China Mobile,and the comparison of the changes of relevant financial indicators such as China Unicom and China Telecom,it is concluded that:(1)China Mobile’s profitability maintains its advantage and continues to improve after returning to A shares;(2)The operation ability has a rising trend;(3)the solvency to stay ahead,long-term solvency enhancement;(4)Development capacity continues to increase substantially;(5)short-term market response showed a positive trend,the domestic market premium is high.