Studies On Back-door Listing Of Changjiang Securities

Backdoor listing, as a special form of business combination, it has always been a unique role in mergers and acquisitions. Due to the variance of IPO audit standards, backdoor listing has been another approach to be listed as a consequence of many enterprises cannot meet the IPO requirements. As far as the capital-intensive securities are concerned, the securities company itself needs to enhance overall competitiveness by expanding capital through market financing continuously. Meanwhile, securities regulators also have raised new requirements in order to enhance the company’s ability to control risks on net capital standards.. Therefore, the securities companies have shown considerable aspiration to be listed. However, the performance of securities companies in the short term is far beyond to achieve the IPO standards due to the influence of market condition. Making the appropriate choice about the right company to take the shell backdoor listing is the preferred way for securities companies to become stronger. Shell companies have experienced a fundamental change on scope and direction by injecting new assets and business, with obtaining a broad financing platform. Nevertheless, the backdoor listing transactions might as well produce some issues because of its particularity. The selection of shell resources, backdoor motivation to the backdoor listing of accounting and performance analysis is worth in-depth studying and researching.This article illustrates the main issue concerning listed stocks from different aspects by selecting the case of Changiang Securities backdoor Shijiazhuang Refining-Chemical. Firstly, the backdoor listing of theories and concepts are introduced and defined. Secondly, it will indicate the respective transaction motivation and introduce the main model of Securities backdoor listing and the development of related accounting principle separately from the angle of shell side and securities company backdoor side. Then, it mainly analyzes the process of Changjiang securities cases, motivation, equity value, accountant processing, index analysis and so on. It will explore the backdoor listing of securities companies both short-term and long-term performance from the accounting indicator comparisons and trend of net capital by describing the entire process of the backdoor listing from four steps, explaining the backdoor specific motivation from the respective interests of both sides, reflecting the equity value from the calculation of two stages of equity value rate, illustrating the method of accounting treatment backdoor from different accounting standards. Finally, make a summary of the study conclusion and come up with relevant suggestions and trend of net capital. Finally, make a summary of the study conclusion to and puts forward the relevant recommendations.The innovation of this article is that:(1) we analyzed by selecting a single case, rather than large sample data, the problem of the backdoor listing will be faced in a specific way.(2) According to the latest financial data, long-term performance of the backdoor listing of securities companies were compared and analyzed.