Abstract: On the basis of review of reasons for cross listing, this article explores why Chinese oversea-listed companies go back to domestic A-share market. The empirical findings from the 120 H-share firms listed on the Hong Kong main board indicate that the low capital cost which is the consequence of high issue premium in A-share market, the difference between domestic and oversea financing practices, and the promotion of government are direct reasons for the companies' return. Besides, the holding stockholders in oversea-listed companies may pursue the hidden benefit of control, which is the intrinsic reason of return. Consequently, this study suggests that to better protect the benefits of A-share investors, the government should strengthen the supervision on the issuing policy of returning firms, and improve the current pricing methods for returning issues.

Keyword: Motivation of going back to domestic in H-share; Cross listing; Return for control right