Study On Group Companies' Integral Listing In China

At the end of 2003, with the successful integral listing of TCL group and Wugang share holding company, many state owned group companies expressed their willingness to conduct the operation of integral listing. Because they regarded it as the best way to reorganize all the resources of the group in order to solve some long-standing problems.This dissertation takes integral listing of group companies as the object of study at the time of full-circulation. At first, I will introduce some theories about merger and acquisition, especially lay emphasis on assets reorganization and then give out the definition of integral listing.In part two, I focus on three basic models of integral listing, namely IPO after conversion, stake purchase and consolidated listing. By analysis from various aspects such as implementation efficiency and resource utilization, I get the qualifications of group companies that are suitable for conducting this operation. These kinds of companies should have good assets quality and distinct share holding structure, etc.In part three, I mainly discuss the motivation of group companies in China to implement integral listing. I not only try to find out its theoretical source, but also integrate theory with practice to analyze the real reason of companies' preference on equity financing. The backward management capacity has confined group companies' financing from internal. In terms of external financing, considering the disequilibrium of financing cost, backward development of our bond market, weak-form efficient market as well as investors' irrationality, most group companies prefer equity financing.The fourth part of the dissertation lays emphasis on the impacts of group companies' integral listing that may occur on the companies themselves and the capital market as well. Generally speaking, integral listing will help to optimize the administering structure of listed company, broaden financing channels, regulate associated transactions, improve financial innovation, so as to ensure the equal opportunities for all investors. However, it may also bring some pressures on our capital market.In part five, I conduct a detailed research on the integral listing of Shanggang Group, introducing its action plan, drawing charts to illustrate the whole process of its integral listing and using the stock pricing model to calculate the reasonable IPO price of Shanggang Group for people to get a better understanding.The last part of the dissertation is for conclusion and prospects. After pointing out some aspects that should have our attention, I also put forward my own suggestions in this part. Looking into the future, I do believe that our government will take comprehensive impacts into consideration to guide the gradual and healthy implementation of group companies' integral listing. This problem also requires further studies.