Huatu Education Backdoor Listing Failure Case Studyhuatu Education Backdoor Listing Failure Case Study

With the development of the economy,the market is becoming more and more open,and the capital market has become a very important platform for corporate financing in China.IPO and backdoor listing have become an important means for Chinese enterprises to enter the capital market for a long time.However,limited to China's relevant laws and regulations,enterprises that can meet IPO conditions are generally leaders in the industry or subdivision.In this way,some small and medium-sized enterprises with better development will be discouraged from IPOs,and they will choose to go back to the market.At present,the laws and regulations related to the backdoor listing in China are relatively mature,and the number of shell resources is relatively large.This also provides a broader space for the choice of shell companies through the backdoor listing,which further stimulates the backdoor.Market enthusiasm.According to the statistics of the WIND database,the number of backdoor listings has increased from 7 in 2013 to 9 in 2014,reaching the peak of the number of backdoor listings in 2015,reaching 20 people.In the meantime,the backdoor market is also a whimsical,especially the irrational speculation about "shell resources",which deviates from the nature of backdoor listing.The regulatory authorities immediately noticed this anomaly.In September 2016,the CSRC issued a revised “Management Method for Major Restructuring of Listed Companies”,which was interpreted by the market as the most serious new regulation in history.With the gradual tightening of China's regulatory policies,the number of backdoor listings has experienced a large-scale decline.According to statistics from the WIND database,the number of backdoor listings in 2017 was only 6 and recovered to the level around 2013.Compared with the same period,the decline reached 70%.On December 12,2017,Jiang Yang,the then vice chairman of the China Securities Regulatory Commission,made a public statement as a management.Under a series of strict management policies,the quality of the backdoor market was greatly improved,and the irrational speculation on “shell resources” was obvious.Cooling down,the valuation of shell resources returned to a reasonable level.In the context of this large policy,the difficulty of listing on the backdoor is becoming more and more difficult,and the listing of backdoors has become more and more standardized,and the opportunities for enterprises to enter the capital market have become increasingly scarce.In recent years,although the success of backdoor listings is not uncommon,but the case of backdoor failure has occasionally occurred,and there is a gradual increase.Based on the case of Huatu Education's two cases of backdoor failure,combined with the relevant theoretical basis of backdoor listing,this paper first analyzes the motivation of Huatu Education's backdoor listing from the two aspects of internal motivation and external motivation;In-depth analysis was carried out separately;from three perspectives,that is,the perspective of the enterprise itself,the perspective of the government and the regulatory authorities,and the choice of the appropriate listing approach according to its own situation,some inspirations were drawn from the failure of Huatu Education to backdoor listing;The conclusions of the failure of Huatu Education's backdoor listing are summarized,and it is hoped that it will provide some experience and enlightenment for the enterprises that are listed in the future,and express their views and wishes for the development of the future capital market.