The Analysis On The Effect Of The Private Enterprises Backdoor Listing

Private enterprise is the core strength to promote rapid development of China’s economic, but there are some flaws in the real world of private enterprise itself, such as a high risk business, a small scale, less own funds, poor ability to withstand risks and the level of credit is not enough, and so on. Accordance with the relevant statistics, it shows that there are about two-thirds of private companies do not have access to credit guarantees, and for those companies with high earnings are concerned, of which only one-third of the enterprises have credit guarantees. Although private enterprises achieved rapid development, but there are still many factors that limit their development, which is a key factor in financing. Through the backdoor listing will help private enterprises to obtain long-term development of low-cost funds from the large capital markets and increase its influence, it also help enterprises to improve their internal management. For private enterprises, the study investigated the theory and operation of the backdoor listing will be great necessity and significance.This dissertation based on the case of S company and analyzed systematically the antecedents and consequences of backdoor listing, it draws some insights and revelations about the backdoor listing. First of all, this dissertation describes the background and significance of the study, summarizes the relevant theoretical research in different countries, and points out the research ideas and framework of the paper. Then it introduces the backdoor listing of the related theory and basic operation process, mainly includes the backdoor listing, shell resource and shell companies, and comparing them with the IPO, it introduces the current policy, enterprise merger and the acquisition related theoretical basis. Then it describes the status quo of China’s private enterprises and the reasons for the selection of backdoor listing, including private enterprises financing difficulties and the plight of the listing of discrimination, the emergence of backdoor listing and reasons. This dissertation focuses on the analysis of the process, the impact and the effect of the backdoor listing of S company, and it points out the enlightenment and reference to other private enterprises in the successful listing of S company, finally it summarizes the paper and looks forward to the future.Backdoor process has its complexity, private enterprises need to start from their own economic strength and management level, reasonable to avoid risks, it is possible to improve the quality of backdoor listing. Under the background of the country’s "supply side reform", the research on the backdoor listing will help the private enterprises to broaden the financing channels, eliminate backward production capacity, and increase investment in new areas and industries.