Analysis On The Motivation And Effect Of Shunfeng Holding Backdoor Listing

In recent years,with the upgrade of the domestic consumption structure and changes in consumer preference,under the driving effect of e-commerce,China has become the largest logistics market in the world,where competition is increasingly fierce in the whole logistics industry due to the homogeneous patterns of operation.Besides,as the world economy is developing with uncertainty,the economic growth of China is obviously slowing down,and new concepts such as “ Internet+ ” and“ sharing economy ” emerge,the logistics industry faces new opportunities and challenges.In this context,the express delivery industry began to hold hands with the capital market to choose the listing and financing,hoping to use the power of capital to realize the transformation and development of express delivery enterprises.Most companies,including Shun Feng,have opted for backdoor listings.In China's IPO audit strictly and time-consuming longer,the backdoor listing is relatively simple to operate and takes shorter,to express enterprises backdoor listing has become a relatively good choice,a day before the listed success means that are in a strong position in the future.This paper made a case study of Shunfeng Express ' s reverse merger with Maanshan Dingtai Rare Earth & New Materials Co.,Ltd.and found that Shunfeng Express chose the backdoor listing as it was driven by factors such as government policies,industrial competition,time saving and financing demand,based on an analysis of relevant literature.With the method of event study and financial indicators,a comparative analysis was made on the market response and the financial changes of Shunfeng Express after the backdoor listing.The results showed that the market gave an active response to Shunfeng Express ' s backdoor listing.The share price of thecompany rose sharply,bringing more wealth to its shareholders.Moreover,not only its financial performances have improved significantly,but also its governance structure has been optimized since the backdoor listing.Through the study of Shunfeng Express' s backdoor listing,this paper enriched the study cases of backdoor listings in hope of providing references for other logistics enterprises preparing for backdoor listings.