Analysis And Case Study On Backdoor Listing In China A Share Stock Market

Backdoor listing, as a way of merger and takeover, has greatlyincreased in China Capital Market from1997, by which unlistedcompany can require asset from stock market. Firstly, it gains the controlright on one listed company, and then invests the high-quality assets tothe listed company, thus realizing the goal of indirect listing and fundraising. Company listed can realize the raising of performance and avoidthe risk of pausing, even stopping to go public. Backdoor listing bringsabout mutual benefits for companies both listed and unlisted. With theadvancement of capital market and improving consciousness of financingfor enterprises, it's necessary to go deep into backdoor listing.The paper analyzes backdoor listing from various perspectives.Firstly it introduces the background of this behavior, current regulationsand theoretical basis, followed up with the statement of key points. Dueto the fact that cost and benefit are considered to be major problem,detailed analysis is given to this issue. The paper also studies the case ofShanxi Fenghuo acquisition for listing. Lastly, the paper draws the conclusion, proposes suggestions and makes forecast of backdoor listing.