Case Study On The Backdoor Listing Of Focus Media

In recent years,under the background of the increasing warming of China's Ashare market,the increasing of overseas listing costs,the decreasing of financing efficiency and the domestic listing policies,etc.,the motive of US-listed Chinese companies to get listed in domestic high-valuation markets became more obvious.Many Chinese technology companies listed in the United States are trying to withdraw from overseas markets and return to the Chinese capital market.On the one hand,from a national strategic point of view,it is necessary to guide the return of high-quality China-based stocks to provide a good investment target for China's capital market so that capital can be transferred to new economy enterprises through market-oriented way which will enable innovative enterprises to grow rapidly and make the society share the growth value of new-economy enterprises.This will further speed up the pace of economic restructuring and promote a virtuous circle to provide assistance for the transformation and upgrading of China's economic structure.On the other hand,there is a particularity in these enterprises returning to China's capital market.The domestic and foreign markets have disparities in price differences.There is a lot of arbitrage space and shell resources in the market speculation.With the further deepening of the reform of the capital market,more new-economy enterprises will choose to return to the domestic capital market in the future.And there will be an urgent need to improve the corresponding laws and regulations that US-listed companies choose to return to list on the A-share market.Therefore,by studying the case of Focus Media's returning to A shares,it is very important to evaluate the possible impact of the return of A shares on the A-share market and improve the corresponding laws and regulations.Through analyzing and studying the case that Focus Media delisted from the US stock market and succeeded in returning to A shares backdoored HEDY Holdings,the author analyzed the motivation and program flow of Focus Media's delisting and backlisting by using the methods of theory and practice and the normative research methods.This article explains the particularity of the return process of Focus Media by illustrating the delisting of Focus Media and the mode of backdoor listing.It also illustrates the reasons for the success of Focus Media in returning to A Shares.It proposes that the return mode and backdoor approach should be selected according to the reform process of China's capital market.In the returning of the China's shares,we must know what to do or not.We must treat different policy in the stock in different way with discretion.And the author put up with corresponding advice to US delisted A shares withdraw from the market,red-chip return,backdoor listing from the market and regulators aspects.