Research On Motivations And Risks Of Establishment And Listing For CNPC Capital Company Limited

Under the promotion of mixed ownership reform,the injection of financial assets into listed companies so as to form financial holding companies has been followed and favored by many large state-owned enterprises.However,many companies failed in this way.Based on this,this paper puts forward three questions:"What is the motivation behind the financial holding company to be listed,"what is the root cause of the risks when the company goes public" and "the possible risks of setting up the listed company".In addition,this article uses Cnpc Capital Company Limited as a representative of such financial holding companies to study the above issues.This article is mainly based on the case study method,supplemented by the literature research method,the small sample analysis method and the event research method.First,combined with the regulatory policies of our financial industry and the operation of the capital market,it reveals the motivation of Chinese enterprises keen to push financial holding to go public.Then,by analyzing the "internal causes" and"external factors" that cause the regulators to "strictly control" attitude,the paper summarizes the root causes of the risks of going public.Finally,by summing up the issues concerning China Securities Regulatory Commission and Shenzhen Stock Exchange in the formation and post-listing financial risk the paper summarizes the risks of confronting the financial holding company.The results show that the formation and listing of financial holding companies aims mainly at performing the function of "combination of industry and financing" and"combination synergy" through listing financing of finance assets feeding real economies.Some other reasons like optimizing the ownership structure,improving the governance structure and enhancing the business vitality are among the special forces for large state-owned enterprises.Through backdoor ST companies achieving financial holding company to be listed,it is necessary to consider the common risks to backdoor listing,but also the influence on the above risk.By the way,the late approval from the main authorities and instability of financial industry policies are main risks which lead to the failure of the financial holding company to go public.After the establishment and listing,due to the imperfect business integration,the synergy effect is not obvious.In the short term,financial risks such as high financial leverage,insufficient debt repayment ability and low profitability are discovered.In addition,due to internal transactions and related transactions,part-time work of Directors Supervisors and Senior Manager and trust crisis,there are financial risk transmission and contagion mechanisms.According to the motivations and risks of the establishment of financial holding company,this article puts forward the following suggestions.Firstly,the group that plans to form a financial holding listed company can refer to the backdoor plan of Cnpc Capital Company Limited and avoid the risk of backdoor listing through ingenious plan design.Secondly,financial holding companies which have already been established and listed should set up independent and professional risk management departments and deploy them to various business companies.They also should deploy "fire wall"mechanisms from the perspective of business,capital,personnel and information.In addition,they also should strengthen Internal accounting control from the perspective of authorized approval control,risk control,and special audit control.Thirdly,industry regulators should improve the regulatory mechanism of financial holding companies,determine a regulatory authority as the main one and formulate risk supervision index system for different types of financial holding companies.