The Research For The Back Door Listing By Domestic Real Estate Enterprises

The domestic real estate industry has started late,whereas it is developing rapidly and playing an irreplaceable role in the domestic national economy.However the real estate industry has already stepped into a gentle development stage with the trend of “house purchasing heat” faded to some extent.On one hand it is due to the implementation of house purchase quota policy which greatly reduces the purchasing need of house for citizens,and it also affects the cash withdrawn speed of the real estate enterprises,therefore increases the pressure of funding of enterprises.On the other hand it is on account of the continuously enhanced adjustment and control over the real estate industry by the state,restraining the development of the real estate industry by the enactment of policies covering with the eight,ten and five national regulations etc.,and therefore tightening the bank lending and increasing the difficulty of financing in real estate enterprises.The real estate enterprises with developing foundation of fund,facing the macro environment stated above,in order to solve the funding problem and realize sound and fast development of itself,many real estate enterprises choose to carry out the transition through expanding the financing channels in the capital market as the first choice.But it hold them back for the high threshold of IPO,the long approval time,the strict vetting,especially the regulation and control for real estate enterprises which tends to be more harsh.Facing the double pressures from funding and the policy,many real estate enterprises will have to set their sights on back door listing,hoping to step into the capital market through merger and restructuring activity and to expand the channels of financing,therefore achieve the effective operation of itself.This paper uses case study method,analyzes the circumstances of back door listing of the real estate industry over the years,and then selects the failure case of back door listing of Longguang real estate through the shell of Jialing China and the successful case of Languang group of companies through the shell of Dikang Medicine,and looks for the causes of their success and failure through the motivation and process aspects etc.,at the end it summarizes the conclusions and proposes some suggestions based on those mentioned above.Hopefully to provide helps through the research of this paper for real estate enterprises that would like to have a back door listing,helps them to successfully carry it out and enjoy the benefits from the capital market and meanwhile realize the sound and fast development.