Study On Listing Weakness Of JiaTe Corporation

"China's government work report in 2011 "and "The Twelfth Five-Years Plan" clearly stated that government will encourage finanical market to better use the financial instruments such as stocks, bonds, industry funds,etc to significantly increase the proportion of direct financing, Currently, in developed countries and regions, the securities market are flourish. The ratio between lum-sum market capitalization and GDP are all nearly 100% or even higher. China's securities market has been started since 1990, now, the total number of listed companies in Shanghai and Shenzhen has reached 2,000, the market capitalization has more than 26 trillion which count around 70% of GDP. In recent years, China launched the main board,the SME board, the GEM. The new expansion of the three panels also has been put on the agenda in first quarter of 2011. In this case, how pre-listing companies to accurately grasp the relevant policies and regulations, reporting and approval procedures; and what philosophy guide them to find the company's weakness and develop coping strategies to shorten the listing process and Improve financing efficiency, has become the focus of pre-listing companies to be concerned.The author has more than 10 years of experience in investment bank and IPO issuance audit; visited nearly a hundred pre-listing companies; audited and reviewed more than 200 IPO application materials in which 80 of it has successfully listed. After three years of MBA study, the author systematically summarized the common factors of a company's successful IPO process.This paper specificly analysis the fail questions behind the JiaTe corporation IPO process. After in-depth analysis the key weakness company has such as internal shares issue, the transfer of state-owned shares and assets issues, tax, competition and the profitability issue, the author proposed the coping solutions from a professional investment banker's prospective. Besides, the author also applied the Principal-agent theory, asymmetric information theory and the theory of the ultimate shareholder control in this paper to attempt convert a single case experience to a general principle and solution therefore to help enterprises more effeciently expand their direct financing channels. Moreover,this paper also could help regulatory authorities to standardize Market behavior and help pre-listing companies successfully reach their fund raising goal in the market.