Analysis On Small And Medium Enterprises’ Back-door Listing OTCBB Market

In recent years, as the Chinese economy is increasingly growth, there are manySMEs in China. Most of the small and medium enterprises want to develop and they needfunds. Lack of funds is the biggest problem for SMEs. Although the country alsointroduced a number of policies to support small and medium enterprises, funds shortagestill constraints with SMEs. This paper point out an effective method of financing–OTCBB buy shell listed financing. Based on the case of Fushi International Incorporation,the paper had an in-depth discussion of alternative approach about SME financing.This paper introduces Fushi International Incorporation and then describes the caseof a shell company. First, this paper analyzes the difficulties the Fushi internationalIncorporation may face.Fushi is also small and medium enterprises when it decide to goto the domestic market. The high standard of domestic markets, SMEs can’t be listed.This paper compared with the main capital markets in Hong Kong and the United States,including the NYSE and NASDAQ, AMEX, OTCBB. At last we find out OTCBB is thebest way to finance for SEMs. Compared with IPO and RTO, We make a conclusion thatthe most suitable way to finance for Fushi is RTO. Second, we analysis the advantage ofback-door listing for Fushi international Incorporation on OTCBB.This paper write sixadvantages, they are lower cost and shorter time of RTO, RTO create conditions forprivate financing,conducive to the optimization and reorganization of the company, tohelp to improve the Fushi international Incorporation visibility and Fushi transforminternational standards and foreign capital markets, OTCBB provide good conditions forthe Fushi international Incorporation turning board. Third part analysis the successfulexperience on Fushi international Incorporation listed on OTCBB, including accuratelyselect the appropriate listed way of financing, get rid of the IPO,predicament mergersand acquisitions the American Kepuwei Group has played a key role in the company’smarketing.Finally, although the OTCBB market is a way for SME financing, but prior tolisting on the OTCBB understand not comprehensive will cause corporate dilemma, so Iprovide an explanation that SES may face on OTCBB. Including the careful selection ofintermediaries, Do not bear false financial statements listed in the OTCBB, carefulselection of shell companies, really good job in the integration of the company’s work, and to enhance the quality of the company itself, so that it can be recognized moreinvestors, and thus more good achieve owned, and enable enterprises to develop faster.