Case Analysis Of The Overall Listing Of Wuhan Iron And Steel Group

Due to the historical causes, almost all Chinese enterprises are listed on the stock market as a subsidiary company, which has certain advantages, for example: it can streamline operations, allowing the company focus on the core business; through realizing the total value of the partition business it can increase the company's stock price; the separate listing company is able to enter the bond and stock market for the financing for the company's future expansion and to reduce the reliance on the parent company; the separate listing company benefits from the listed parent company's reputation. However, at the same time, it also has many significant drawbacks, such as: small size; poor competitiveness; the performance of listed company will inevitably be affected, especially when the original listed assets is no longer the profitable assets; more affiliated transactions; enterprise's development is heavily dependent on major shareholders, which constrained the development of listed company; major shareholders regulate the statements, leading to data distortion; it creates the conditions for the major shareholders to occupy the capital and damage the interests of listed companies, especially in the context of the split share structure and that major shareholders' behavior can't be effectively bound. To solve these problems, in addition to the reform of split share structure, being listed as a whole is clearly an important way.This paper takes the iron and steel business, the main core business of Wuhan Iron and Steel Group Company (hereinafter referred to as "Wuhan Iron and Steel Group"), listed as a whole as an example, and applies the relevant theories and analysis methods in financial management and financial investment to analyze the process of the iron and steel core business of Wuhan Iron and Steel Group listed as a whole, including the analysis on the background, the program and the enterprises operating conditions and the market reactions after being listed as a whole. Through analysis, the paper summarizes the advantages and problems of enterprise being listed as a whole. The advantages are that it completes the industrial chain, enhances the enterprises strength, improves corporate governance structure, and is of great significance towards company's sustainable development. The problems are that the medium and small investors suffer from unfair treatment; it easily becomes an "Enclosure Movement" of the listed company; and it easy brings negative impacts on the market. Finally, based on the case study, the paper in the concluding part proposes relevant recommendations to the management and the enterprises. It recommends the management to positively conduct financial innovation, reduce the financing pressure on the market, improve the supervision on additional stock issue tailed for major shareholders, and strengthen the protection of the small shareholders' interests; it recommends the enterprise to continually improve their own quality, abide by its commitments if it is listed as a whole, take the responsibility to enlarge and strengthen itself and protect the interests of small and medium-sized investors, and avoid the behaviors such as transferring business risks under the pretext of being listed as a whole, transporting the interests to the shareholders by being listed as a whole, and acquiring cash from the non-performing assets of the major shareholders.