A Case Research Of Jiuding Investment Backdoor Listing

Although the current IPO speed is increased significantly in capital market in China,there're still many problems if companies choose to be listed by Initial Public Offering,like high cost,strict scrutiny and long waiting list.Backdoor listing,as a method of listing which can bypass some scrutiny process,is able to provide opportunities for those companies who don't meet the conditions for IPO.This paper takes Jiuding Investment backdoor listing through Zhongjiang Real Estate as the research object and describes the basic conceptions of mergers and acquisitions and backdoor listing.It performs comprehensive and in-depth analysis about this transaction and generates experience and inspiration from the operation process.In the beginning,this paper introduces basic information of purchaser and seller,as well as the whole operating process of the transaction in the case study.Then it analyzes the motivation of purchaser and seller separately,and discusses the way to avoid to be recognized as backdoor listing and to bypass the scrutiny of SRC.After that,the enlightenment section reflects on the circumvent supervision issue and analyzes it from three aspects,which are SFC should strengthen post-transaction review,modify the recognition standard of backdoor listing and enhance refinancing audit.It summarizes the research of this paper in the last section.This case is highly representative despite the fact that this is only an individual case.First of all,this is the first pure PE institution which landed successfully in capital market in China.This paper has certain reference value for similar companies who are intended to enter capital market in the future.Secondly,although the backdoor listing is successful,there're many problems about circumvent supervision exists during operating process and this paper performs a detail study on this issue.Finally,the main purpose of backdoor listing,refinancing,has become a major obstacle to the development of capital market in China on which this paper thinks profoundly.