Research On Backdoor Listing In China A Share Stock Market Under The New Regulatory Environment

Material assets reorganization by listed companies is the common means for enterprises to enlarge, transform, arbitrage, reverse losses, and avoid delisting. Backdoor listing is the most special form of M&A. Though the history of backdoor listing in China capital market is not short, there has been no specialized regulatory policy, except for the special backdoor listing requirements of securities companies and real estate companies in 2006 and 2008. Until 2011 August, CSRC revised Measures for the administration of material asset reorganizations, which first proposed backdoor listing standards. In 2013 November, CSRC further defined that the requirements of backdoor listing is equivalent to IPO.This paper consists of five aspects. The first part is to explain the development process of China capital market backdoor listing policies. The second part is to analyze the typical characteristics of the shell resource. The third is about different paying modes of backdoor listing fee. The fourth section is to analyze the behavior of avoiding backdoor listing regulation, and summarize 4 common modes. In the last part, combined with the new delisting policies which CSRC just issued in October 15, 2014, as well as the IPO registered system in future, it makes a prediction of the backdoor listing prospects.