Research On The Economic Consequences Of "Reverse Mixed Reform" Of Private Environmental Protection

To promote the integration of state-owned and non-state-owned capital,the government continues to promote state-owned enterprises to invest in private enterprises and achieve "reverse mergers and acquisitions," in order to break down the financing barriers of private enterprises,reduce their tax burden and financing constraints,obtain optimal resource allocation,and enable them to play an important role in the market economy,thereby promoting high-quality economic and social development.However,the development of the environmental protection industry in China faces many problems compared with foreign countries.Since the end of 2017,China’s financial deleveraging has continued to increase.The implementation of the "Asset Management New Regulations" and the clearing of PPP projects,combined with the impact of previous large-scale expansion,has led to increasing financial pressure in the environmental protection industry.The financing costs of some private environmental protection enterprises have further increased,and various funding problems have begun to emerge.In 2018,the overall economic situation at home and abroad was full of uncertainty,and the risk appetite of the capital market generally decreased.The investment of private enterprises in the environmental protection industry became more and more constrained.Specifically,the investment and financing difficulties encountered by the environmental protection industry in 2018 mainly stem from several long-term accumulated problems,such as high equity pledge risk,cautious lending or even suspension of lending for PPP projects,high financing costs with severe polarization,and serious financing problems for small and medium-sized enterprises.In addition,problems such as slow execution of price and tax policies or inadequate enforcement by local governments and inability to achieve scientific law enforcement will also have a significant impact on private environmental protection enterprises.In 2019,the overall performance and market response of the environmental protection industry remained low due to multiple factors,such as weak market demand,financing difficulties,and the profound impact of the environmental protection industry’s turbulence in 2018.Under this pressure,private environmental protection enterprises proactively seek state-owned enterprises or "rescue funds" led by state-owned capital to invest in them,in order to get out of their current operational difficulties.The phenomenon of actively introducing state-owned capital as a strategic investor in private environmental protection enterprises has also sparked a craze for "reverse mergers and acquisitions."So far,many leading enterprises have already entered the trend of mixed ownership reform and become a member of the "national team" acquired by state-owned capital.Many private listed companies in the environmental protection industry have also planned to transfer or transfer control of the company.Therefore,the study of the phenomenon of reverse mergers and acquisitions in the environmental protection industry is necessary.This article selects Qingxin Environment and introduces Sichuan Development as a typical case of reverse mergers and acquisitions in the environmental protection industry,which has certain representativeness.Based on the literature analysis method and case study method,this article combs through the literature on the motivation,path,and economic consequences of "reverse mergers and acquisitions" in private environmental protection enterprises,based on theories such as equity structure theory,delegation and agency theory,synergy theory,and resource dependence theory.Selecting Qingxin Environment as the case study object,the article analyzes the motivation of Qingxin Environment’s "reverse mergers and acquisitions" from the perspectives of seeking political relationships,obtaining high-quality resources,and solving financing difficulties,and introduces its merger and acquisition path.When studying the economic consequences before and after the reverse mergers and acquisitions of this case,the article analyzes its "dual-carbon" goals and fulfillment of social responsibilities,and selects the main business income and research and development expenditures as evaluation indicators to study its financial performance.