A Study On The Influence Of Back-door Listing On The Efficiency Of The Chinese Stock Market

Merger, acquisition and reorganization is an important means of optimizing the allocation of resources in the securities market, and it is also the eternal theme in the securities market. From the first acquisition of listed company— Sheng Bao An purchased Yan Zhong industrial in 1993, there is more and more acquisition in listed company in securities market, and the patterns are varied. Many private enterprises through merger and acquisition of listed company to achieve the backdoor listing, through the capital market financing channels, optimize the resource configuration, the Chinese securities market to promote the development of securities market in China. Backdoor listings as a special way of mergers and acquisitions, would have become management, accounting, and other disciplines global hotspot issues of mutual concern. In recent years, with the deepening of reform and opening up in our country, the deepening of the reform of state-owned enterprises, as well as the development of securities market in China, around the mergers and acquisitions of listed companies and various assets reorganization activities has become increasingly active. Backdoor listings phenomenon emerge in endlessly, and gradually become the assets reorganization keen exceptionally beautiful a scenery line.Whether financial market is semi-strong efficient is important to finance theory and practice. Neo-classical financial theory suggests that non-arbitrage law makes no arbitrage opportunities in the financial market, so the stock price equals the stocks’ s fundamental value. If EMH holds, we get MM theory, capital asset pricing model(CAPM),consumption based capital asset pricing model(CCAPM). However,behavioral finance theory suggests that because of investors’ irrationality and limits of arbitrage, market is not semi-strong efficient, and we need a new perspective to study financial markets. In practice, if the financial markets are semi-strong efficient, and government regulates insider trading effectively, then the investor should copy the market portfolio. However, if the market is not semi-strong efficient, investors can benefit from analyzing public informationWith significant development since its establishment, Chinese stock market hasbeen an integral part of the capital market. With the improvement of institutions and regulation efficiency, as well as the learning of investors, the Chinese stock market’s information efficiency improved. Today, a widely accepted conclusion is that Chinese stock has achieves weak market efficiency. Whether it achieves semi-strong efficiency still needs further research.The study on the semi-strong efficiency state of China’s stock market can verify the efficient market hypothesis. Analysis on the Chinese stock market investors behavioral characteristics can contribute to the study of Chinese financial markets operation and macro-economy. Meanwhile, the analysis of the efficiency of China’s stock market can also provide reference for investors.Event study has been widely used to examine semi-strong efficiency of the stockmarket. Implementing event study to study stock market’s semi-strong efficiency requires events without new information. The non-tradable shares unlock after China’s share reform provides a scarce event. The reactions of stock prices in China to monetary policy give another perspective to study the semi-strong efficiency of China’s stock market.