Financial Effect Analysis Of The Backdoor Listing Of Sealand Securities

Since the reform and opening-up in 1979,the economy in China has obtained considerable development.With the development of economy,which one of problems company should take consider in the whole period of operating cycle is through the way of expanding financing to enhance the competitiveness of enterprises,and it also crucial to the living and development of a company.In the background of financial crisis,with enterprises' competitive environment have becoming increasingly fierce,demand of enterprise for financing becomes more urgent.As a special form of the merger of enterprises,Back-door listing has been acted as its unique role.Because of the difference of auditing standard between IPO and Backdoor listing,back-door listing become another way in the situation of many enterprises cannot meet the requirements of the IPO of listed on.As a capital intensive securities industry,the securities firm need to be listed financing to expand the capital by itself and to enhance comprehensive competitiveness.At the same time regulators to enhance the ability of risk control of securities company also puts forward new requirements for net capital standards.Therefore,Securities Company showed strong appeal to listing.But due to the influence of the market,the securities company's performance cannot meet the IPO standard in a short period of time,through select the appropriate shell companies and adopt backdoor listing became desirable way to make Security Company bigger and stronger.Shell companies by injecting new assets and business make a fundamental change in the scope and the development direction of listed Securities Company has won the broad financing platform.While the trading mode of back-door listing have own particularity,also produce a lot of questions about the back-door listing,from the selection of shell resource,shell on both sides of the motivation to back-door listings of accounting treatment and performance analysis and so on,all of these are worth the writer carries on in-depth discussion and research.This paper is basing on the case of Sealand Securities backdoor listing through Set Qi.First of all,the relevant background and research significance and the structural framework,the innovation and shortcomings of the paper are introduced.Secondly,involved in the backdoor restructuring process related concept and the backdoor listing relevant theory to illustrate the financial effect,this paper briefly introduces the domestic and foreign related research in this area,backdoor listings for this article research provides the support of related theory and method;thirdly,in this paper,it has a detailed introduction of the process of Sealand Securities back-door listing through Set Qi,through the analysis of the financial data of listed companies before and after,specific studies the backdoor event of Sealand Securities related financial performance,and the influence of the market reaction of equity ownership structure,and combined with the situation the entire securities industry,draw conclusions as following: Sealand securities through backdoor won the good financial effect,compared with the industry level,Sealand securities related financial index have noticeable improvement;Ownership structure have been optimized;it have brought interest to the major shareholders,protect the interest of minority shareholders at the same time;Net capital of Sealand securities have increased obviously,help enterprise to large-scale operations.Finally,making some suggestions about the choice of listing mode to broker,the selection of shell resources when take back-door listing and provide some related policy Suggestions about back-door listing.As an article on the case study,the case is individual case,not for the analysis a common phenomenon which have big samples,while analyze several aspects of the individual case,people have a comprehensive understanding about backdoor listing of broker,then people can comprehensively analyze pros and cons between backdoor listing and IPO,make good choice for company listing.