Analysis of the Economic Consequences of Sina Group’s Privatization and Delisting

Abstract

The “man-made” Chinese concept stock crisis triggered by Ruixing and the United States has adopted a series of regulatory politicization measures, which has made the situation of Chinese concept stock companies more difficult in overseas markets, and more and more companies have chosen to privatize and delist. This article takes the privatization and delisting of Sina Group as an example. It first describes the process of its privatization and delisting, and then analyzes the reasons for its choice of privatization and delisting from the aspects of undervaluation, enterprise costs, short-selling institutions and regulatory mechanisms. Cost and tax-saving effects, etc. are analyzed for its economic effect after delisting. Finally, by summarizing the case, it is expected to provide useful help to other privatized and delisted Chinese concept stock companies.