Research On The Overseas Capital Operation Of Focus Media Company

It is possible that companies from different countries can share the capital market due to the economic globalization,and overseas delisting is an efficient way to realize that.In order to seek rapid,large-scale financing,Chinese enterprises have flocked to overseas market.They not only received a huge amount of capital,but also enhanced the value of the enterprise.But from the beginning of 2010,these companies have been questioned by the foreign investors because of financial fraud and other credit crisis incidents.At the moment,a collective of Chinese enterprises who listed overseas faced the situation that the stock decreased sharply and the market value was underestimated.Focus media could not escape and went private after the battle with Muddy Waters Research,after that,it listed in the domestic capital market again.Through literature research,this paper analysed and researched the overseas listing and delisting literature written by domestic and foreign scholars.Based on this theoretical system,this paper used case analysis method on the Focus Media in-depth analysis,hoping to provide some experience reference to Chinese overseas enterprises and trying to decrease the loss of risk to minimum.This paper analysed the Focus Media in depth through the collection of the information and financial datas of the enterprise and combined with the enterprise's macro situation and global economic environment,and in the analysis of financial performance during the backdoor listing time,this paper made a comparison with peer company.This paper found that in the listing period,the company used a wrong strategy,but it adjusted the strategy in time to save itself.Before delisiting,the company overcome Muddy Water successfully and made detailed plans for privatization.Finally,Focus Media successfully listed in the domestic stock market.During the overseas listing time,though the company commited a common mistake of listed companies,it knew how to save itself,and the success of the privatization and backdoor lisiting is worth of reference.According to the analysis results,the overseas listed companies should avoid excessive pursuit of capital,respond to muddy water actively,raise funds for privatization through several ways,be carefull with the selection of shell companies and the government needs to improve the capital market continuously.Based on the thorough analysis of Focus Media,on one hand,this paper hopes to display the development of Focus Media and behavious of management vividly.On the other hand,the conclusion and recommendation from the case anlysis can enlight the overseas listed enterprises.