Review Of The Current System Of Backdoor Listing In China

Back door listing refers to the listed company through the acquisition of the listed companies,so as to gain control over their rights or the main equity,so that their own realization of the listing.In essence,the shell listing is a kind of asset reorganization,when the reorganization of the assets accumulated more time,is to borrow shell listing.This is an indirect listing behavior,the listed enterprises can through the reorganization of assets,rapid access to the capital market.Compared with the IPO,the choice of the shell listing means that it can enter a more convenient,lower cost of the listing of the road,therefore,Shell listing has been widely favored by our enterprises.Therefore,how to standardize the backdoor behavior and to carry out reasonable and effective supervision over the listing of the shell is a necessary problem.Since the beginning of the 90 's,China's economic development rate has improved markedly,asset size development is more mature,the number of listed companies are increasing,the difficulty of listing financing is also increasing.In order to obtain a larger share of the financing,and to avoid the harsh IPO supervision,many companies began to use shell listing.It has been a long and arduous exploration process to draw up the regulation rules of listing.Since 1998,the SFC has formulated a series of management measures to enhance the regulatory effectiveness of market restructuring.Back door listing was not identified specifically at that time,instead,rules of M&A were aligned to back door listing.More and more problems appeared since that,the authority realized the standard were demanded to be modified.Consequently,new rules came out in 2011,applying IPO regulations to back door listing.However,problems remaining,indicating more effective norm.lacking of back door listing procedure standards,specific incentives of back door listing transaction and unreasonable stock offering system have weakened its effectiveness.Those questions exist inother countries and regions as well.They made distinctions to it,which had made progress.So in the end,we made a conclusion in solving our problems by learning from others.