On The Back Door Listing Of Private Enterprises

Ever since2008, the capital market has witnessed a new round of back door listing boom in China. As an important form of acquiring the listed companies, back door listing could first ensure a controlling stake and later an injection of the good-quality assets into these listed companies so that indirect listing could be achieved. Consequently, the securities market would serve as a medium for some non-listed companies to finance, thus accelerate their own development. With the development of the market economy and a greater awareness on financing, the back door listing, as the inevitable product of development of the securities market, is catching more and more attention. Therefore, great efforts should be exerted on the study and research of back door listing.This paper, gives a relatively comprehensive analysis of back door listing. At first, a vivid explanation has been give on the settings and significance of back door listing, followed by a brief summary of the theoretical basis of both domestic and foreign back door listing. Based on the analysis of the collating information, a total of86companies chose back door listing as a shortcut to enter the securities market from2008to2012, among which,67companies have been successful,4failed and15more are still working on it. Through the detailed case study of37out of86companies, a vivid description has been given on the characteristic of the shell company, from two separate aspects—the size of the equity scale and the corporate performance. Besides, details have also been listed on the characteristic of the back door party from the view of industrial distribution, the geographical distribution and the pattern of back door listing, through statistical research analysis. Moreover, the settings and current situation of back door listing in China have been well explained with the aid of its motivation analysis. This paper is organized as follows:chapter one, serving as an introduction, would give a brief introduction to the settings, significance, content, research methods and the originality of this study. Chapter2focuses on the theoretical basis of back door listing. In chapter3, a detailed explanation will be given for the current situation and the motivation of back door listing for private enterprises in China’s capital market. In Chapter4, the cost-benefit analysis will be employed to analyze the back door listing of private enterprises. Jiangsu GPRO Group Co., Ltd will be taken as an example for a better understanding of back door listing in China. Chapter5serves as a conclusion, in which relevant suggestions have been raised. The innovation of this paper lies mainly on the case study of37out of86companies, which enriched the theory of back door listing for Chinese private enterprises, from a brand new perspective.