The Case Study On CITIC Pacific’s Reverse Takeover Of CITIC Group In HKEx

In recent years, more and more enterprises choose the reverse acquisition method in thelisted market, compared with the traditional way, the reverse takeover has the advantages of low cost, short time and high yield advantages, so the market favored by more and more enterprises. Especially in the period of economic recession, the income of many listed companies have been seriously affected, the market value is greatly reduced, so that the formation of numerous acquisition of resources to the enterprise, provides the opportunity to reverse takeover of listed. In recent years, China’s economy under the conditions of reform and opening-up, a lot of choice in overseas listed companies, in the foreign exchange supervision and management, strict legal constraints placed in the environment,to seek better development. In 2014 March, CITIC Pacific announced a reverse takeover ofits parent company, CITIC Group, and in August the same year, the completion of the acquisition, listed on the Hongkong stock exchange. In 2014, the country put forward the development of the mixed ownership reform, promote the integration and development of all kinds of capital, to break the monopoly of state-owned enterprises of the situation, change the traditional management mechanism. The strong support of the central through CITIC Group as a state-owned pilot reform, hoping to demonstrate a multiplier effect in the short term, to provide guidance to speed up the reform of state-owned enterprises. The national macro level through the demonstration effect, SOE is committed to promoting more modernreform. The event belongs to the history of the first central enterprises backdoor Hongkong subsidiary listed. This case study analysis.Based on the summary of domestic and foreign scholars on the basis of a reverse takeover on the motive of concept, process, advantages and reverse acquisition of reverse acquisition are summarized. Listed in Hongkong conditions and advantages are described, analyzed the reasons listed in Hongkong citic. Combined with the related policy, the enterprise own situation, social environment and other reasons, analyzes the motivation of CITIC Pacific reverse acquisition. In the analysis of the specific listing of its implementation process and financial situation, leads in the reverse acquisition in the process of asset injection, the acquisition of equity ratio, transaction time and other aspects need to pay attention to the problems and inspiration to other enterprises listed brought.In the listing process, CITIC Group gradually reduce the proportion of state-owned shares, a variety of non-public capital, especially private capital to participate in reform of state-owned enterprises, CITIC through diversified equity reform, will achieve the integration of social capital and the state capital, to further improve the corporate governance structure and internal operation mechanism. CITIC Group in the reverse acquisition process for "shell" companies, for the timing of listing, the operation mode of enterprise and its own strength are important reasons for its successful listing. The listing of CITIC Pacific’s debt to broaden the financing channels, CITIC Group’s business coverage of important industry China economy and emerging industries, the overall industrial layout with comprehensive strength and versatility, which can grasp the Chinese CITIC economic development opportunities, and can alleviate the periodic wave in different stages of economic impact on profitability. CITIC listed in the development process in the ownership structure, financing and other aspects of change, in the future China will try to get the equity incentive mechanism, to encourage reform mentioned in the employees holding shares in the view. The government is promoting the enterprises of mixed ownership reform, CITIC Group is a pioneer of mixed ownership reform, the market operation mode and management structure will become the reference of enterprise reform.