Legal Issues On Overseas Back Door Listing

Chinese private-owned enterprises take overseas backdoor listing as their first financing choice under the imperfect domestic capital market. However, such way of capital raising, from one hand, has brought a lot of benefits to those private-owned companies who need capital badly; on the other hand, it has brought many troubles to the relevant supervisory authorities.Then what kind of impact will the backdoor listing impose on China's economy and private-owned enterprises; what kind of efforts should the relevant authorities take and what should the authorities do in order to improve the current legal system. This paper will first give a brief introduction of the overseas backdoor listing, then talk about some negative effects and causes of such capital raising method, and go on with the details of procedures of overseas backdoor listing to elaborate our current regulations which are concerned. And finally, the paper will deal with some possible measures which can be taken to develop an effective legal system for the middle-and -small sized enterprises to enjoy a better capital market.