Research On The Background,Path And Influence Of Create Century Company’s "Backdoor-Like" Listing

As a special way of listing,shell listing is favoured by the capital market.The emergence of shell fever has also led to speculation on shell resources,insider trading and other irregularities that infringe on investors’ interests in the capital market.In order to maintain the stable development of the capital market,the regulatory requirements for shell listings in China have been continuously adjusted and the vetting has become increasingly stringent.To some extent,this has stopped the speculation in the capital market,but it has also prevented many enterprises with backdoor needs from going public because they cannot meet regulatory conditions.Although regulations are constantly being improved,there are still loopholes that regulators have failed to spot.As a result,"backdoor-like listing" in the capital market quietly rise." backdoor-like listing " avoids the red line of backdoor listing identification standard through the design of transaction mode and makes it only review in accordance with material assets reorganization,which improves the probability of passing the review and achieves the purpose of listing with a lower threshold.As a new way of listing and its transaction process is more complicated,"backdoor-like listing" contains opportunities and risks worthy of our attention and research.In this paper,we try to analyse the problems of China’s regulatory system by analyzing the regulatory system in light of the institutional background of China’s "Measures for the Administration of Major Assets Reorganization of Listed Companies" regarding the criteria for determining shell listing.At the same time,it analyzes the feasible path of "Backdoor-Like" listing in conjunction with relevant literature,and concludes that "Backdoor-Like" listing is mainly achieved from two avoidance perspectives,i.e.by maintaining the control of listed companies and controlling the scale of trading assets to avoid restructuring listing.This paper concludes that "Backdoor-Like" listing can be achieved mainly from two circumvention perspectives,namely,by maintaining control of the listed company and controlling the scale of the assets traded to circumvent restructuring listing.On this basis,the paper chooses the research object of Create Century Company’s "shell-like" listing of JANUS Precision Company,studies the path of its "backdoor-like listing",and examines the impact of the "backdoor-like listing" on the company’s financial capacity,on shareholders and on the capital market.The paper finds that there are loopholes in the criteria for determining a restructuring listing and that Create Century Company has circumvented the criteria through a "backdoor-like listing" to achieve a shell listing.The restructuring transaction in this case has produced some improvement in the performance of the listed company and the market is optimistic about the company’s development,but its long-term performance remains to be seen.In addition,the integration risk and goodwill impairment risk of M&A restructuring and possible insider trading in the "backdoor-like listing" process are likely to cause losses to the rights and interests of small and medium shareholders.Finally,the paper puts forward some suggestions for listed companies to pay attention to the quality of restructuring enterprises,strengthen the post-listing integration and protection of small and medium shareholders;and in view of the problems of the current regulatory system,it also puts forward some suggestions for the regulatory authorities to further refine the restructuring methods and improve the delisting mechanism.