Financial Effect Analysis Of Holistic Listing Based On Wuhan Iron And Steel (Group) Corp

As China looks set to become an economic powerhouse, but it can't be separated from the development of capital market. Being stimulated by the national policy, capital market's getting into the era of assets reorganization outside the company. Ever since 2004, holistic listing which acts as an institutional innovation has been the most popular topic in China's stock market. Especially, after the holistic listing of TCL group and Wu Gang Co. Ltd, many groups and big companies expressed the wish to be holistically listed. Then the concept of "holistic listing" fulfilled the whole stock market of China.Against this background, it is a more important significant research to make a systemic study on holistic listing from theory to practice, analyses the influences on China' stock market and companies which holistic listing brings, give some advice for holistic listing of Chinese large company.In this paper, it is most important to pay special attention to the thread of time . Form the development of assets reorganization, we found that holistic listing was new model of assets reorganization. So a considerable amount of research about assets reorganization provided theoretical foundation for holistic listing. Based on this and character of holistic listing, this paper concludes the intention, motivations and the model of holistic listing by analysis by synthesis and inductive methods.Holistic listing is propitious to improve the operation and administration of the company. In historical, segmental listing may lead to divorcement of production and sale and made advanced industries be out of line with backward ones. So holistic listing can enhance its independence and be favor of integrating the various resources in order to established comprehensive categories of the industry sectors to certain extent. The study analyzes the influence of group companies' holistic listing from four aspects as follow: increasing financing channels; reducing associate transaction; rising industry competitive advantage and protecting public companies structure. It can also lower transaction and management costs.We will analyze whether holistic listing can achieve the anticipated result. So this paper makes a statement about financial effect from the angle of market entities such as listed companies, controlling shareholders and small and medium state-owned shareholder. Above all, this paper pays attention to financial effect of listed companies. We will performance both qualitative and quantitative analysis. We use case study method. The latter part of the thesis is a case analysis of Wuhan Iron and Steel (Group) Corp, just an application of the analysis framework mentioned above. We will justify the results of holistic listing of Wuhan Iron and Steel Company, conclude whether the financial effect was remarkable and analyze affect factors. Then, the study demonstrates the essential strategies and conditions of group companies' holistic listing, thus, provides a standard for the group companies who plan to holistic listing in order to enhance success rates of holistic listing.