Research On Backdoor Listing In Stock Market Of China Under The New Regulatory Environment

With the continuous development of China's rapid economic development and the improvement of Chinese capital market,more and more enterprises can get a more direct financing opportunity by listing itself on the stock market;at and then,further strengthen their position in the market with the capital brand effect which have accelerated the development pace of the companies.Therefore,as driven by the interests,listing eligibility has become a scarce resource in the securities market.However,there are a lot of voices in the market believe that(the rapid increasing quantity of the IPO issue is more likely to affect the stability of the securities market with the continuously increasing listing enthusiasm.)So,in the past period of time,the way by compressing the size of IPO has been taken by regulators to ease the downward pressure in the capital market,which has achieved timeliness improvements.While it has to be admitted that along with more and more high-quality companies join the IPO waiting list,much more time needs to wait for companies,generating the "barrier lakes of IPO" as time passes.As a result backdoor listing has become the priority choice for the companies with the urgent financing needs.Since backdoor listing can increased the market liquidity,attracted the incremental funding,and mobilized the enthusiasm of investors perspective,it can be a useful supplement to the rules of stock public offering,and then help regulators fill in gaps for the stock issuance system to promote the capital market make further improvement.As time goes by,the "shell resources" has ushered in a new round of market speculation storm due to the registration system and the strategic emerging board plan have been delayed,and more and more overseas listed companies are ready to return and landing the capital market of China.Then the Commission released a new revision of the "major asset restructuring of listed companies management approach".However,it does not mean that investment value of shell resources will be lost because of the most stringent regulations,it will promote the true quality of shell resources more scarce and improve the strength of the restructuring side,thus highlighting its investment value.Furthermore,combined with the strong demand for high-quality shares in the capital market,the backdoor heat or will pick up again.For many emerging Internet companies,its profitability is hard to meet the needs of the IPO conditions.At the same time,the New OTC Market is difficult to meet the enterprise first choice listed expected because of its poor liquidity;low valuations;base and innovation layer shown polarization characteristics status,thus the financing problem of Internet enterprises still exist.This financing environment caused a number of Internet companies chose the foreign capital market,such as Sina,Giant Interactive and Qihoo etc.How to issue shares on the stock market successfully in China for companies in the field of Internet and other emerging areas has been focused by enterprises,brokers and regulators.In this paper,the Digital Tamrac which is a representative case has been chosen to analyze the causes and cost performance of the backdoor listing.After that,the successful experience will be summarized and provide a reference for other similar enterprises to landing the capital market.In addition,this analysis would be able to help us find out current issues of existing supervision system,then bring forward a scheme based on the regulatory perspective,which may offer a reference for the supervision department and later scholars.