Analysis On The Motivation And Effect Of Backdoor Listing Of Chinese Concept Stocks

China's economic level has been improving continuously in recent years.The domestic capital market has become increasingly prosperous.The booming capital market has further enhanced the financing capacity of a-share market and ignited the desire of enterprises to look for investment.In addition,under the influence of the government's requirements for the development of a new Internet economy and the support from the relevant policies,more and more Chinese companies that went overseas for listing and financing in their early years have realized the necessity of returning.In one year right after the policies were issued,a total of 38 concept stocks announced the start of privatization.On June 4,2015,the executive meeting specially proposed to accelerate the launch of venture enterprises with special equity structure in the domestic capital market,which means that Chinese enterprises with VIE structure are expected to be listed in China.Driven by the two-way market environment and policies,Chinese companies ushered in the first wave of repatriation in 2015.As a typical representative enterprise of Chinese concept stocks,Qihoo 360 has been hesitating in different ways back to a-share market since it announced its privatization in June 2015.Eventually,Qihoo 360 chose to borrow the shell company SJEC.Qihoo 360 initially chose to receive IPO guidance at first,but finally succeeded in backdoor listing under the environment of gradually tightening backdoor policy,which was not by coincidence.In this paper,the background of both parties in the transaction is sorted out through the case study method.Also the scheme and process of backdoor transaction are sorted out.At the same time,the motivation of backdoor transaction,backdoor scheme and the influence of double transaction are analyzed.This paper also uses the comparative analysis method to compare the advantages and disadvantages of IPO and backdoor listing,and focuses on the cost difference between IPO and backdoor listing and its impact on Qihoo 360.As for the conclusions obtained from the analysis,this paper combines theory with practice to summarize the desirable experience and existing deficiencies in this case.This paper aims to study the motivation of Chinese concept stocks to choose the different ways back to a-share market and the influence of the different ways on the effect of Chinese concept stocks through the backdoor listing case of Qihoo 360 under the environment of new normal IPO of CSRC and strict new backdoor policies.The conclusion obtained through the exploration provides effective suggestions and references for the subsequent regression of concept stocks.