Economic Analysis Of Chinese Private Enterprises Outside The Backdoor Listing

The securitization of fund-raising has become the trend in today's international capital market. When the Chinese economy is experiencing rapid and constant growth, more and more Chinese private companies are seeking for capital in the international markets. Now going public overseas is one of the important direct fund-raising channels. Overseas reverse merger, as one popular way, has many advantages such as low costs, low risks, simple process etc. It can also effectively circumvent the barriers set by IPO. Many private companies with strong fundamentals and performance have taken full advantage of the overseas resources of shell companies, and regarded it as an effective method of indirect going public and fund-raising.This dissertation analyzes the international and domestic economic background as well as typical cases of the Chinese private companies'overseas reverse merger. The further discussions focus on the theoretical support, positive effects and negative effects, and elucidate the significant meanings and propose the corresponding measure suggestions. The writer concludes that Chinese companies' going public overseas is beneficial for perfecting the Modern Enterprise System, entering the overseas capital market, expending to international merchandise market and the flow and value-added of the companies'assets. In order to encourage the qualified Chinese private companies to pursue the direct fund-raising in international market, the Chinese authority shall set up and perfect the relevant laws and regulations, promote the foreign exchange management measures, establish market risk-proof system and reinforce the service, management and supervision to the private companies by the government and community association.