Is It Feasible To Return To A Share Market By Issuing IPO?

IPO issuing, backdoor listing, landing on the new three board market, stepping into strategic emerging boards and selling themselves to A share listed companies are the main channels for the current stock market to return to the mainland market.

However, under the actual circumstances, they are more willing to take backdoor listing and IPO issuance to achieve the goal of returning to more Chinese companies that are eager to return to the mainland market.

In fact, for the Chinese stocks companies, there are many considerations to be announced from privatization, delisting, dismantling the VIE structure, and then choosing the way to return.

Among them, after its privatization process starts, it often needs to analyze its repurchase cost and legal risk in detail.

At the same time, once the Chinese stock taking enterprises take the privatization of delisting, they encounter unexpected risks and even the risks of class actions. Their return path is still quite long, and the cost pressure of their return is quite huge.

It can be seen that for any Chinese listed stock going to the overseas market, they have to take the road of reunification. They really need careful consideration.

In addition, it is important to note that even if the Chinese stock taking companies can complete their privatization delisting process, they still need to take full account of their subsequent regression channels.

Obviously, according to the entry threshold of the domestic stock market and the problem of IPO barrier lake, it is very difficult for the stock taking enterprises to privatize the delisting market to achieve the goal of returning to the A share market in a short time by means of IPO issuance.

It can be seen that in recent years, the expected return of Chinese stock taking enterprises has been continuously warming, which often reflects a trend and a direction, but more still reflects the helpless feelings of China's stock taking companies.

However, in the Chinese stock market's return path, it is full of trials, and how much will it ultimately be able to return to the A share market in real sense and get the expected market value expansion?

In fact, in recent months, rumors about the return of China's stock market have been there.

Among them, in early May of this year, the market has long been heard that "the SFC or the listed companies in China will be listed on the domestic market". After that, the SFC also passed the signal of "in-depth analysis and study of the possible impact of IPO on the stock market through the merger and reorganization of A".

At the same time, a series of new rules of backdoor regulation and tighter regulation in the subsequent period also have a more or less impact on the stock market's return to the A share market.

Perhaps for those eager to return to the stock market, especially those who have already completed the privatization delisting, they are eager to find the fastest way to return to the goal of officially returning to the mainland market.

The reason for this is that on the one hand, the queuing time of IPO is too long. During the period, it is still necessary to continuously replenish enterprises' Renewal materials. However, a little carelessness may still be faced with the risk of rejoining the queue and even being punished. On the other hand, the supervision is becoming more and more stringent. Even if the enterprise can enter the preliminary trial and trial session, it is still necessary to examine all its materials, and whether its follow-up can be successfully listed or whether it can get a relatively good valuation level.

After a long and complicated process, the number of enterprises returning to the A share market through IPO issuance is still very small.

In the actual situation, for some of the enterprises that can not reach the threshold of access access, it may take a temporary landing of the new three board market to complete the pition of its subsequent pfer board.

However, for some Chinese stock companies with a certain market size, they may be more keen to achieve the goal of short term return by means of backdoor listing. But at the present stage, with the introduction of the most stringent new rules for backdoor, it brings a lot of trouble to some stock companies, especially those who have completed the privatization of the stock market.

Obviously, for

The path of return still depends on the looseness of the policy and regulatory environment.

At present, as the SFC has made a stand on the return policy of the Chinese stock market, it is still difficult to convey the way of the stock return. However, for the Chinese stock companies that have completed the privatization delisting, they are in a dilemma or are still looking for ways to return as soon as possible.

In fact, the listing itself is a double-edged sword for the Chinese stock companies going overseas, but the risk and test of its going overseas listing is greater than the actual opportunities brought after its listing.

On the one hand, China's listed stocks are listed overseas, and the scale of actual financing is very small. The stock market value of most of the stocks in the stock market has been undervalued for a long time, and can not truly reflect the real value of the enterprises.

As a result, under the environment of low valuation and low financing scale, the enterprises will reduce.

The attractiveness of its own investment also has a negative impact on the listed companies themselves and stock investors; on the other hand, it lies in the overmature market environment and the high cost of violating illegal costs. During this period, if the listed companies involve information opaque, financial fraud and other acts, it is easy to trigger the risk of class action, and it will undoubtedly constitute a fatal blow to the brand image of the company.

What's more, we need to be vigilant against the short term funds and expand the negative pressure of the enterprises, so that the listed companies themselves will bear enormous risks.