Study On The Economic Consequences Of Greenland Group Backdoor Listing Through Jinfeng Investment

Since the 21st century,China's real estate industry has developed rapidly and has become a pillar industry that promotes China's rapid economic progress.However,due to the rapid expansion of the real estate market,housing prices have become severely fragmented,and housing has become a tool for speculation.In order to stabilize the housing market,the Chinese government has introduced relevant policies to regulate the real estate industry since 2010.At the beginning,the main sources of funds for real estate companies were bank loans and own funds.With the downturn in the real estate industry and the macro-environment of deleverage,the“golden age" of the real estate industry has gone forever.It is impossible for those real estate companies to just rely on bank loans and own funds to make the shortfall in the capital.On the one hand,real estate companies are facing the pressure of destocking,on the other hand,those companies face the risk ofcapital chain breakage because of the single financing channel.Therefore,more and more real estate companies are trying to solve the problem of financing difficulties by listed on the capital market.There are only two ways for real estate companies to go public:one is the initial public offering,and the other is the backdoor listing.However,the initial public offering is subject to many policies,and only two real estate companies that have successfully listed in the past nine years.In this context,Greenland Grouprs ability to successfully achieve A-share listing through backdoors has certain implications for other non-listed real estate companies.Moreover,Greenland Group,as a pilot enterprise of the mixed ownership reform of the Shanghai State-owned Assets Supervision and Administration Commission,can accomplish the diversification of its own equity and the marketization of the governance mechanism through the backdoor listing.Some.experiences of the mixed ownership reform are also worth to be learned by other state-owned enterprises.This paper firstly clarifies the motivation,integration and performance of the general enterprises backdoor listing through the collation of the existing studies and then reviews the existing researches about this case to clarify the studied perspectives,demonstrates the significance of this paper.Secondly,it introduces the concept of backdoor listing and some related theories used in the later case study.At last,through a comprehensive and in-depth study on the case of the Greenland Group backdoor listing Jinfeng Investment,this paper introduced the basic information of the trading parties and the design of the trading plan at the beginning,and then,analyzed the motivation of the Greenland Group's backdoor and the related resources integration on corporate governance structure and industrial structure for the backdoor listing.After the listing of Greenland Group,it analyzed the performance of capital market and its financial performance.The performance of the capital market showed the short-term economic consequences and the four aspects of solvency,profitability,operational capability,and growth ability showed the long-term economic consequences caused by the backdoor listing,and relevant conclusions and inspirations are drawn.Except for setting an example for the non-listing real estate companies which want to listed on the A share,this paper also wants to provide experience for state-owned enterprises that are undergoing mixed ownership reform.