A Case Study On The Privatization Returns To A Shares Of Xueda Education

In June 2015,executive meeting of the State Council examined and adopted "some policies and measures opinions on promoting innovation and public entrepreneurship people",clearly put forward to promote the special ownership structure of enterprises in the domestic market,the policy easing will open wider channels in the overseas listed companies to return to A-shares.A series of raising limit brought by foreign listed storm technology in demolishing the VIE structure and A-shares listed really makes overseas-listed Chinese companies jealous,so that stock companies return with high enthusiasm.But the strategic emerging board shelved,Chinese stocks in the domestic capital market is lack of a platform for financing.In recent years,the new three board market booming,listing threshold is low,less queuing time really attract a lot of enterprises,but the financing of small scale,lack of liquidity is its flawed,transfer mechanism lied aside has poured cold water to the companies which realize the A-share listed through three new board transfer.Go IPO this way it is necessary to face strict regulation,or even a long queue time,and the higher cost of the issue.Under this background,a number of enterprises to achieve the purpose of listing through the backdoor,but because of the "shell resources" nervous,and the "backdoor listing" tighter regulation,strict backdoor listing of the road will be more and more difficult to walk.In this paper,the analysis of the case of the privatization of education regress to A shares,found the Xueda education was emerged by domestic listed companies to avoid the backdoor listing,this model can make the stock enterprise to get rid of financial strain;More importantly,this model of privatization,dismantling VIE architecture,A shares listed almost simultaneously,saving a lot of time.In addition,after the education return to A shares,huge financial and industrial advantages of the major shareholders listed companies provide support for Omnibearing layout and development of education follow-up industry,synergistic effect of industrial integration is worth looking forward to.But this model also has some problems,it is mainly that the acquired company's control power will be affected.In this paper,in-depth analysis of the case,compared with other stocks return to the A shares model,find out the advantages of this mode of education.Then,in order to explore the applicable conditions of the education model,this paper analyzes the key points of the success of the education model from the perspective of laws and regulations and the choice of both sides;Finally,the paper reveals the problems of the education model,and gives some suggestions.Standing in the position of the company,this paper believes that the privatization of education return to the A shares model is worth other companies for reference.