The Case Study Of The Giant Backdoor Listing

Due to the differences between Chinese and foreign stock market regulatory policies,the restrictions on profitability standards of listed companies and the low prosperity of Chinese stock market at the time,many Chinese companies tried to be listed in the US rather than China.However,the US stock market tends to undervalue the China-Concept stocks,which can led two listed companies of same type have great disparity in Total Market Value between Chinese and US stock markets.US stock market also has much more strict legal supervision on investors' interests protection,especially since several short-selling waves happened to the US listed China-Concept stocks.Nowadays,as a result of the revitalization in Chinese capital market,the attraction of the high level stock prices and the dominance of listed companies in stock market,those China-Concept stocks which successfully listed in the US stock market a few years ago now started to come back home,setting off a new wave.On October 30 th,2015,Century Cruises Co.,Ltd.announced that the company sold all the assets and liabilities to its originalactualcontrollerJianhuPeng and related parties,stripped the old assets,then took full control of Giant Interactive Group Inc.in a ?13.1 billion deal,and issued stocks to all shareholders of Giant Interactive.Since the market opening on November 17 th,2015 to December 8th,2015,the new Century Cruises' stock price achieved raising limit for 20 consecutive days,raised from ?31.65(Closing Price)to ?212.94,the Total Market Value of Giant Interactive quadrupled from less than ?20 billion to ?100 billion.This paper studies the motivations of backdoor listing by data analysis,using accounting index approach to explore the influence of Giant Interactive's privatization and backdoor listing behaviors,the company's Profitability and Growth Ability.It ishopedthatthis paper willprovide some reference to the return and backdoor listing behaviors of China-Concept stocks,as well as make possible suggestions for establishing a more mature and orderly stock market.