The Case Study Of Ucloud’s Dual-class Share Structure

Before 2019,enterprises in China were prohibited from listing on the Dual-class share structure,while Hong Kong,China,implemented the rule that listed enterprises on the Dualclass share structure should not be listed without exemption.The strict restrictions on Dualclass share structure have led many high-tech enterprises to give up the domestic listing option and go to the United States for listing,resulting in the loss of many high-quality enterprises in China’s capital market.In March 2019,for the sake of strategy for innovation-driven improvement,Dual-class share structure companies are firstly allowed to be listed by the domestic science and technology innovation board.In December of the same year,UCloud was successfully listed,becoming the first A-share enterprise to implement Dual-class share structure listing.Since 2020,the world has been hit by the COVID-19,and Sino US relations have fallen to the freezing point.Many Chinese concept stock companies that have implemented the Dual-class share structure are waiting to return.In this context,UCloud’s successful implementation of the Dual-class share structure is of great significance to relevant enterprises that are preparing to list in China.After sorting out the literature and theories related to Dual-class share structure,this paper conducts an in-depth study on the case of UCloud’s implementation of Dual-class share structure.First,it introduces the company of UCloud,and then analyzes the specific reasons for UCloud to implement Dual-class share structure and the company’s Dual-class share structure arrangement.Thereafter,this paper analyses the effect of the structure based upon dissect of its agent.Through the performance of UCloud before and after the implementation of dual equity,as well as the comparison with comparable companies that are not Dual-class share structures,it is found that at the current stage,UCloud’s Dual-class share structure has basically realized its implementation motivation and produced positive results.Based on this,this paper summarizes the reference significance of UCloud’s relevant arrangements under this structure for science and innovation enterprises that want to implement a dual equity structure listing.In addition,in view of the problems existing in the implementation of the dual ownership structure of UCloud at this stage,this paper provides reference suggestions.Finally,making a summary of the above analysis and clarifying the future research direction have ended the article.Having summarized and abstracted the correction theories of Dual-class share structure,as well as opted the analysis target of the first Dual-class share structure listed enterprise in the territory,the impact of this equity structure on the company was presented in the paper.Then,some settlements have been proposed in that the structure may incur certain trouble.The relevant conclusions drawn have theoretical support and factual basis,It can provide reference suggestions for high-tech enterprises that are willing to implement Dual-class share structure to be listed on the domestic science and technology innovation board.