Research On The Financial Performance Of Backdoor Listed Co Mpanies In China's Capital Market

As one of the ways to be listed,backdoor listing,the essence of which lies in the mergers and acquisition between companies,possesses the advantages of lower costs,less constraints and more convenient compared with initial public offerings,therefore it has been preferred by companies desiring to be listed for a long time.As the backdoor listing cases increase,problems caused by this shortcut are emerging,including hyping shell resources,insider trading,etc.,which has disturbed the market order seriously,thus drawing attention from regulators and investors.Since CSRC revised Administrative Rules on Acquisition of Listed Companies and Momentous Assets Reorganization of Listed Companies in 2014,demands for backdoor listing have been increasingly strict.Besides,positive IPO politics made it quicker to enter the capital market,as a result,many companies turn to the way of IPO instead of backdoor listing.Although backdoor listing's boom is over,research on this issue is still valuable.This paper chooses the backdoor listing case of Shengda Mining Co.,Ltd.,which is still in full compliance with regulatory standards today,combining statistical conclusion to explain how backdoor listing impacts the financial performance,and then analyses motivations for it to achieve backdoor listing.This paper combines theories with practice,focusing on normative research and case studies.Firstly,it introduces the research background and theoretical basis of backdoor listing,and reviews existing literature on backdoor listing in aspects of characteristics,performance and motivations.And then,it selects samples in the capital market to examine the effect of backdoor listing on financial performance.After that,it separately studies the case of Shengda Mining Co.,Ltd.,using assets with high qualities to achieve backdoor,especially focuses on the financial performance,compared and analyzed vertically and horizontally.Finally,under the circumstance that the statistics results and case study correspond to each other,this paper summarizes motivations of this case,and believes that it can be learned from the case for mining industry companies who wish to achieve backdoor listing.