Catastrophe Progression Method-based Analysis On Credit Evaluation Of Holistic Listing Of SAIC Motor

When capital market of our country was in its infancy stage, carveout listing remains the main listing method. This method, to some extent, helps to develop the market. From a long term point of view, however, problems raised from this method, like related transaction and fund occupation, are sabotaging current capital market and corporations’ growing. Ever since TCL Corp.’s holistic listing, people started to be aware of this new listing method. Nowadays,holistic listing, as a pivotal building block of state-owned enterprise(SOE) reform, has attracted extensive attention in the capital market. It has become SOEs’ primary reformation goal as it tackles the disadvantages of carveout listing to meet the requirement of the country’s current economic development. As more and more corporations began to switch to this path,credit evaluation of their performance becomes essential. The evaluation shows the status of the listing corporations, provides standard for SOE reform and market supervision, and thus informs the corporations who are pursuing holistic listing.This paper chooses the case of SAIC Motor Corporation Limited(SAIC Motor) to evaluate and analyze its holistic listing performance based on catastrophe progression method.Firstly, we review the literatures to explore the intrinsic relationship between holistic listing and its performance and understand the status quo of relative research. Then we define and summarize terms and theory used in the literatures. After that we introduce how SAIC Motor implemented its holistic listing. Based on these studies, we compare data derived by entropy and catastrophe progression method to analyze the evaluation of financial and synergistic performance before and after SAIC Motor’s appearance on the market. In the meantime,financial performance data from other three automotive corporations of the country is introduced as comparisons to investigate SAIC Motor’s level of difference in the whole industry to strengthen the effect that holistic listing can bring about to financial performance enhancement. Our analysis shows that holistic listing makes a positive effect to SAIC Motor’s performance. At last, based on SAIC Motor’s listing performance and its affecting factors, we provide suggestions to automotive manufacturing corporations who are pursuing holistic listing.