The Study Of Motivation And Financial Performance Of Backdoor Listing Of Real Estate Companies

With the reform of economic system and the development of private economy,capital has become the source of enterprise development.In order to achieve the goal of financing and expansion,securities market platform is the first choice for enterprises.However,due to the approval system adopted in the A share market in China,there are more stringent requirements for IPO listing,and listing qualification has become a scarce resource.For real estate companies,listing and financing is more difficult.Real estate enterprises are capital intensive enterprises.Their asset liability ratio is high,which is difficult to achieve the IPO’s requirement.And our country has strict restrictions on real estate companies’ IPO.Therefore,the real estate companies who want to go listing try to seek other ways.Back-door listing,which gets the favor of real estate enterprises,has low risk,low cost and fast speed.It can not only help enterprises broaden the financing channels,but also can optimize the allocation of resources by merging and acquisition,expand the reputation and accelerate the expansion in the capital market.After the release of "state council’s notice to resolutely curb the rapid rise in housing prices in some cities" in 2010,the SFC suspended the listing,refinancing and mergers of real estate companies.King Hand Housing Co.,Ltd backdoor Hubei golden ring Co.,Ltd is the first real estate back-door listing case since 2010 in China’s capital market.It is generally believed that this case indicates the opening of the real estate enterprises’ listing.In the future,more real estate companies may enter the capital market by back-door listing.Based on reading a lot of related literature,this paper makes a deep analysis and research on the case of King Hand Housing Co.,Ltd Hubei golden ring Co.,Ltd listing.First,it introduces the transaction background,subjects,mode and process of the case.Then it analyzes the trading motives of the two subjects from the financing needs,IPO system and requirements.Secondly,we use the event study method to analyze the short-term market performance of this case,use the financial index analysis method and the EVA model to analyze the long-term financial performance,and use the cost income model to calculate King Hand Housing Co.,Ltd’s income from the transaction.Finally,some inspiration and consideration can be drawn on the choice of the shell resources,the validity of the real estate enterprises’ back-door listing and the impact on the capital structure and financing ways of the enterprise.This paper,based on the analysis of the motivation and the performance of the case,uses some traditional research methods to make a deep study of its performance and then increase the calculation of the returns obtained in this transaction.It may provide some reference for the unlisted real estate enterprises.