Backdoor Listing And Related Problems

In the past 20 years, China's socialist market economic system developed continuously approaching the goal of market-oriented and openness.The developments of China's capital market get significant achievements in the field of establishing modern company management systems and introducing investment and financing methods.This paper reviews the international and domestic waves of mergers and acquisitions, considers the current domestic market environment and previous theories, then proposes the goal-oriented theory.In practice, different companies have different M&A targets and choose appropriate M&A methods according to these goals. For this article focuses on backdoor listing, there are comparisons of qualifications, costs, procedures and integrations of initial public offerings and back-door listing, and list the types and strategic goals of companies which choose the latter method. On the basis of the strategic goal, consider what prompted the company to back-door listing.Goal-oriented theory helps understanding the unique strategic goal drives a company to adopt proper pre-selection, operation and integration during the listing, and helps an enterprise to improve valuations, strengthen internal controls and get effective integrations. Also, the research on the strategic goals helps regulators to consider the infrastructures which should be equipped and the legal norms which should be developed. The promotion of market development should be based on the economic needs. Regulators need to decide which kind of systems should be build first, like business systems or financial support systems. Certainly, regulators decide which norm takes a long time to develop, and put the limited energy of management on the activities which adapt to economic trends. During the accelerated development, new methods of capital operation appeared in the demotic market, and the accounting standards are evolving to protect the welfare and interest of stakeholders. For some parts of the standards start from scratch, the impact of new accounting treatments on the capital operations cannot be ignored. So accounting treatments must be taken into account when we study the backdoor listing.Every step of M&A has the most important inducement for itself, and each has its particular risks. The analysis of the risk factors in M&A facilitates enterprises to risk preventions and listing. Consider strategic goals and possible risks together, help regulators formulate macro-policies and improve the system of legal supervision.