Case Study On Overseas Listing Of Yirendai Co., Ltd.

With the rapid development of international equity financing,overseas listing has increasingly become an important means for enterprises to achieve financing.In 2014,the successful listing of Lending Club,the ancestor of P2 P,triggered a boom of domestic P2 P lending enterprises entering the capital market in a large scale.Due to the strict listing standards of the domestic capital market,overseas listing or the realization of the new H board listing by backdoor is the main way for their plan of listing and financing if lending enterprises in China are going to cross the market threshold in the short term at present.In December 18,2015,Yirendai(NYSE:YRD),listed successfully in NYSE,became the first domestic P2 P network loan platform listed in the United States.Therefore,this thesis chooses Yirendai as an object of case study and introduces the motivation theory on enterprises' overseas listing and their listing mode.In addition,the case of Yirendai's successful listing in the United States is thoroughly and deeply analyzed,in hope of providing references and experiences for other lending enterprises to be listed or ongoing ones,helping them to come into market more efficiently.This thesis is divided into five parts to study the overseas listing of Yirendai Co.Ltd..The first chapter is the introduction of the research background and significance,and the research status at home and abroad is reviewed,and then it expounds the research framework and research method of this thesis,finally it explains the innovations of the thesis.The second chapter is a summary of the related theories which introduces the modes and characteristics of overseas listing,process of enterprises' overseas listing and motivation theory of enterprises' overseas listing.The third chapter is an overview of the case which mainly introduces the general situation of Yirendai Co.Ltd.,the background and the process of its overseas listing.The fourth chapter is the case analysis.By analyzing the incentive of Yirendai's listing and overseas financing,the first section of this chapter talks about the main reasons for Yirendai's choice of listing overseas which includes credit enhancement effect,better capital operation platform and relatively lower listing standard of overseas capital market.The second section of this chapter analyzes the market choices of enterprises' overseas listing,and holds that enterprises should choose different levels of securities market in accordance with their own financing needs and enterprise scales.The third section of this chapter analyzes the decisions of the way of enterprises' overseas listing.It is concluded that for the current Chinese lending enterprises,building VIE framework to achieve listing is a more efficient way to go public.At the same time,the intermediary institutions must be chosen rationally and appropriate issuing strategy shall be formulated.The fourth section of this chapter analyzes the timing and risk of enterprises' listing,and deems that enterprises generally choose the upstream stage of macro and micro economic situation as the best time to come into market,and the effective control of the risk of issuance,refinancing and VIE mode shall be strengthened.The fifth section of this chapter makes an analysis of the effect after listing,and holds that listing can improve the experience management level of enterprises,enhance enterprises' profitability and increase the intrinsic value of enterprises.The fifth chapter deals with inspiration and related suggestions,which include three points,that is,the enhancement of enterprise's own quality,giving full play to the active role of intermediary agencies and taking advantage of foreign capital markets.Lastly,based on the analysis of the case,some pieces of advice has been given for domestic lending enterprises who seek listing in the United States.Firstly,make clear the purpose of listing and choose listing location reasonably.Secondly,use VIE mode carefully.Thirdly,grasp the opportunity to go on the market.Relevant government departments must vigorously promote market-oriented reforms,effectively promote the overseas listed companies to return to the local market,and promote the development of non-financial institutions so as to provide better financing environment for domestic enterprises.