A Study On The Performance Of The China Grand Auto Backdoor Listing

The approval system of the IPO listed is extraordinary harsh in China.Back-door listing can bypass a series of investigation for the relevant departments of securities.Thereby the backdoor listing can shorten the time cost and reduce the cost of transaction.By using backdoor listing,a company can come into the market without censoring of securities department.By using backdoor listing can reduce the financing constraints,improve the allocation of social resources efficiency.Shell resource costs are rising,whether the impact of backdoor listing is worth studying.This paper analyses the cost-effectiveness and achievements of the market and finance about the China Grand Auto(CGA)after backdoor listing in the form of asset replacement.This paper defines the process and operation method of backdoor listing through learning the relevant theoretical knowledge and the domestic and foreign research,and the performance of backdoor listing is analysed.In this paper,we analyze the performance of CGA backdoor listing,including three parts: market performance,financial performance and cost effectiveness.The market performance is divided into short-term market performance and long-term market performance.And the hypothesis test of short-term market performanceis calculated by the cumulative excess rate of return,the long-term one is the purchase and yield rate of long held stock.The result shows that backdoor listing can make the stock price of CGA temporally rise,But the short-term market performance and its share price did not bring considerable market performance,investors are not optimistic about the short-term market,from the long-term market performance,investors are more optimistic.For financial performance,this paper adopts the methods of financial indicators and economic added value to analysis the security,growth,profitability and development of CGA,and analyzes by using the radar chart and DuPont analysis method.This paper shows that CGA needs to make long-term investment decisions,expands economic transaction,promotes the overall development of enterprises with new investments,allocates partial surplus cash,increases dividend payments.Through cost-benefit analysis,the cost does bring the expected benefits,backdoor listing of CGA achieve the desired results.In this paper,through the case study to get the revelation,the capital market system design,to guide the regulatory resources and capital market resources to regulate the operation of a better degree of blue chip companies to promote the approval system to the registration system to reduce the audit content,modify the delisting law,Improve the delisting mechanism,and promote the development of the bond market.To summarize the listing of CGA,through the backdoor listing in this way,to raise the financing capacity to expand capital expenditure and enhance the value of the company,whether the original shareholders or new financing shareholders are from the proceeds,backdoor listing to broaden the allocation of resources of the channel,to achieve the optimal allocation of resources.