Research On The Motives And Economic Consequences Of Similar Backdoor Of Gem Listed Companies

With the development of economy,the listing of companies has become the ultimate goal of more and more companies.The listing of companies is the product of the interaction of market,economy and enterprises for a long time.The main ways of listing in China are direct listing through IPO and curve listing through backdoor listing.In China,the current listing audit system is the approval system.Under this audit method,companies that choose to go public with IPO will face difficulties such as strict listing audit system and long time consumption.So gradually more and more companies choose to achieve the ultimate goal of listing through backdoor.However,with the increasing number of companies that choose backdoor listing,vicious behaviors such as inflated value of shell companies and internal transactions that harm minority shareholders gradually appear in the capital market,which violates the original purpose of allowing backdoor listing of companies in the capital market.So in order to the healthy development of capital markets and to protect the rights and interests of minority shareholders,the securities and futures commission began to gradually pay attention to the backdoor listing of the company’s audit,the CSRC for the motherboard market standard of identifying a "backdoor listings" by the beginning of "convergence"with IPO audit requirements gradually changed to "equivalent" and its requirements,and do not allow the backdoor listing on the gem market.Under such rules and policies,many companies bypass backdoor listing and make an issue of "class" backdoor listing.Through well-designed and clever capital operation,they avoid the audit system of backdoor listing and IPO listing and finally achieve the purpose of listing.This article will focus on Zitian Technology Co.,Ltd.,which is located in the pressure plate market.As the first company in the GEM market to use the "category"backdoor method and successfully listed,the selection of cases is typical.This article first analyzes and summarizes the domestic and foreign literature about the company’s backdoor listing,and elaborate on the relevant concepts of backdoor listing and the theory of the motivation for selecting backdoor listing;The continuous improvement of auditing standards sorts out the emergence and evolution of the "class" backdoor model in China’s capital market.Then,taking zitian science and technology as an analysis case,through the introduction of the transaction parties and the transaction process of zitian science and technology "class" backdoor listing,analyze the motivation of zitian science and technology "class" backdoor listing.In addition,the short-term economic consequences were analyzed by adopting the event study method,and the long-term economic consequences such as the behavior of major shareholders and the impairment of goodwill after the transaction of zitian technology were evaluated by using the financial index analysis method.Finally,based on the detailed analysis of the trading process of zitian technology,the first gem company that successfully reorganized and listed in the way of "class" backdoor,the paper summarizes the supervision focus of the regulatory department after that,and provides a new idea for the CSRC to supervise the backdoor listing of chuangyi.Finally,the paper puts forward Suggestions on the identification system of backdoor listing in gem market,standardizing the audit system of backdoor listing of gem listed companies,so as to make gem and the whole capital market develop healthily.