Study On Basic Legal Issues Of Overseas Back-door Listing

Overseas　back-door　listing　has　become　the　onshore　private　company's　first　financing　choice　in　the　way　of　listing.　In　2004,　with　the　development　of　economy　in　China,　the　number　of　the　onshore　private　company,　which　taking　the　way　of　overseas　back-door　listing,　is　growing　rapidly.　The　"red　storm"　is　still　prevailing　in　the　international　capital　market.　With　regard　to　that　phenomena,　we　noticed　two　different　opinions,　one　is　that　it　is　necessary　for　the　finance　supervision　administration　to　pay　more　attention,　the　other　is　that　it　is　difficult　for　the　onshore　private　company　to　step　into　the　overseas　stock　market　and　take　the　money　back.　The　central　authority　has　made　certain　reactions　to　that.　What　on　earth　would　the　overseas　back-door　listing　influence　on　the　civil　economy　and　the　onshore　private　company?　What　supervision　stress　and　what　supervision　mechanism　should　the　finance　supervision　administration　take?　That　deserves　us　to　consider.　　　The　first　section　of　this　paper　is　to　elaborate　the　definition　of　overseas　back-door　listing,　the　way　of　how　to　operate　that,　the　status　quo　of　that　and　the　merits　of　that　when　compared　with　direct　overseas　listing.　The　second　section　is　to　elaborate　the　affirmative　effect　and　negative　effect　the　overseas　back-door　listing　would　take　to　the　civil　economic　and　onshore　private　company.　Simultaneously,　to　analyze　the　reasons　why　the　private　company　is　in　favor　of　the　way　of　overseas　back-door　listing.　The　third　section　is　emphasis　on　the　analysis　of　barriers　in　our　current　legal　system　that　stunts　the　development　of　the　back-door　listing.　The　former　part　is　to　review　the　historical　supervision　system　and　to　describe　the　current　supervision　system.　Then　follows　the　brief　analysis　of　the　issues　in　that　supervision　system.　The　rest　part　is　to　clarify　and　analyze　the　deep-seated　causations　why　the　onshore　private　company　trend　to　choose　the　way　of　overseas　back-door　listing.　The　last　section　aims　to　bring　forth　the　tentative　ideas　to　perfect　the　current　legal　system　from　two　sides.　One　is　to　improve　the　supervision　system,　to　achieve　the　goal　of　creating　a　better　situation　for　the　private　company　to　financing　by　way　of　overseas　listing,　and　at　the　same　time,　to　avoid　the　negative　effect　it　would　take.　The　other　is　to　introspect　the　defects　in　current　legal　system,　which　would　stunt　the　development　of　the　onshore　private　company,　and　to　rectify　the　defects　step　by　step.　Finally,　we　could　eliminate　the　fundamental　motives　of　the　onshore　private　company　to　choose　the　overseas　back-door　listing,　and　give　the　onshore　private　company　the　chances　to　choose　onshore　listing　or　overseas　listing.