Research Of Group Companies' Overall Listing In China

China's capital market has grown to be a critical part of the national economy during more than 10 years' development.Due to some historical reasons, the majority of China's publicly listed companies were born of some high-productive capital from their mother companies. Such a method leaves over a lot of problems for the public companies' standard operation.Thus, it is important for the securities market to initiate a most basic institutional innovation to solve such a historical issue. That's the institutional requirement for China's stock market to make progress from double-trade system to a higher level. The overall free float should currently be the most essential institutional innovation of the financial reform of China's stock market. Especially, such financial innovation should not prevent market's institutional innovation as a whole. Therefore, this research will focus on the following four most debated aspects of the current institutional innovation--the group companies' overall listing: Chapter 1 Group companies' overall listing and China'senterprises' mergerThe study firstly introduces the definition of merger, and current methods of capital recombination.Secondly, the research discusses the main issues of China's public companies' merger, and concludes that such problems mostly resulted from separated shareholding in China's companies.Thirdly, three case studies of TCL, WuGang Group and Bailian Group are applied to analyze the background of the group companies' overall listing, and the three modes of overall listing: merger, directionally increasing publishing and merger listing.Chapter 2 Analysis of the motivation of key group companies' overall listingFirstly, the study introduces one common theory of international financing: financial structure ascertainment is to relax the low-affectivity of company's investment decision caused by the dissymmetry information gathering. According to this theory, company's capital structure is motivated by company's new project financing desire. Such "sequence" financing theory states that the company prefers internal financing first, then low-risk bonds, and finally no alternative but using public stock exchange market.Secondly, China's public companies' financing preference is introduced and then the following seven main reasons are analyzed. 1. Unbalanced development of capital market. 2. The limitation of public companies' corporation management. 3. The low-profitability barred internal financing. 4. Unbalancing of stock financing costs and risk. 5. Public companies controlled by internal individuals. 6. Domestic policies guidance. 7. Public companies' managers seek maximizing their personal benefits.Thirdly, the study analyzes the motivation of group companies' overall listing. Five main motivations are: efficiency explanation, information theory, power of market, agency issue and economies of scale. Chapter 3 Performance of group companies' overall listingFirstly, the study analyzes the influence of group companies' overall listing from four aspects as follow: increasing financing channels; reducing associate transaction; rising industry competitive advantage and perfecting public companies structure.Secondly, the positive influence of group companies' overall listing on the development of Chinese capital market is discussed from four aspects: financial innovation; decreasing national-owned shares; investors' profits and merger.Thirdly, the research analyzes the negative influence of the group companies' overall listing from the following aspects: increasing stock market volume; institutional guarantee; industry conformity and shareholders' equity guarantee. Chapter 4 Prospect of China's capital marketFirst of all, the study demonstrates the essential strategies and conditions of group companies' overall listing, thus, provides a standard for the group companies who plan to overall listing.The research finally concludes by expecting China's capital market based on the issues of separated shareholding, the quality of public companies, and positioning of stock market.