Case Analysis Of 360 Backdoor Listing

With the development and improvement of China's capital market,there are a lot of cases of mergers and acquisitions.And if high-quality enterprises are eager to having a longer-term development,financing in capital market is an effective way to improve their own competitiveness.Due to the cumbersome IPO review,long cycle and multiple gate closures in China,many companies choose to achieve the purpose of curve listing through the channel of backdoor listing! The wave of Chinese concept share returning to A-shares has started since 2015.The market's speculation on shell resources and the huge difference in market value between domestic and overseas capital markets have caused huge concern from all walks of life.The China Securities Regulatory Commission had further clarified and improved the standards about the backdoor listing in 2016,which the audit is more stringent,and it is also intended to cool the return of the stocks! In 2017,Jiangnan Jiajie announced a major restructuring with 360(360 Security Technology Inc.),and the spokesman for the SFC also released good information on the return of China stock outlook.In the past few years,the stock returns have gone from peak to trough,and now there is a trend from the trough to the peak.There are not only successful cases but also failed cases during the period.It is of great research significance to withdraw from the US and quickly return to A shares.Based on this background,this paper starts with the case of the Jiangnan Jiajie listed by the 360,analyzing the return background of the 360,and the analysis of the motivation for delisting from the United States,the listing of the cause of the backdoor and the selection and analysis of the shell resources,evaluating the short-term financial performance of the 360 through the event study,EVA and financial indicator analysis method.In addition,the trend of domestic regulatory policies,and the shell resource selection and process of backdoor listing also provide ideas and suggestions for the subsequent return of the stock market.The study shows that the purpose of delisting and backdoor listing from the United States is to reflect its own market value and to better develop its own business and restructuring.The analysis of shell resources shows that Jiangnan Jiajie which has poor management and equity structure,appropriate and the normative aspects of the shell are important factors to the backdoor listing of the 360.And the short-term financial performance analysis shows that the backdoor listing meets the needs of the development of the company,which brings positive financial performance to some extent,increases the shareholders' wealth in the short term,and has solved the financing problem of the 360,but on the other hand,the financial indicators such as the intrinsic value and operational capability of the company are not particularly significant.In addition,the analysis of horizontal financial indicators shows that the performance of the 360 is stable,which has certain advantage compared with comparable companies.Overall,the evaluation of financial performance needs to be further evaluated from a long-term perspective.Finally,through the analysis of 3600 backdoor listing cases,the paper gives Chinese companies' suggestions on the return of China's stock market and advices about 360' future development.