Research On The Performance Of Qihoo 360 Backdoor Listing Of Jiangnan Jiajie

In the early days,China’s capital market had high listing conditions,and many companies chose to go to the US capital market for listing.However,since 2010,the domestic and foreign capital market environment has changed,and the situation of China Prospective Stocks in the United States has deteriorated.Short-selling institutions represented by muddy water have shorted China Prospective Stocks.The value of Shaozhong’s stock market has shrunk severely.At the same time,China’s capital market environment is getting better and better,especially in the Internet industry,and it has received a very high valuation.So many Chinese stocks,especially Internet companies,have chosen to delist from the US capital market and return to the Chinese A-share market.As we all know,there are two main ways for companies to raise funds for listing: the first is IPO listing,which has high standards,strict and long review;the second is backdoor listing,which takes a short time and has high efficiency.So many companies choose to backdoor listing,such as Focus Media backdoor Qixi Holdings,Giant Internet Backdoor Century Cruise and so on.In 2016,the China Securities Regulatory Commission promulgated the "Management Measures for Major Asset Restructuring of Listed Companies",known as "the most serious group new regulations",and it has become more difficult for companies to backdoor listings.Qihoo 360 is a company that successfully backdoored after the introduction of the "most serious new regulations".It has a very strong demonstration effect,which is very important for the research of Qihoo 360 backdoor performance.This article takes the case of Qihoo 360 delisting from the US capital market and taking Jiangnan Jiajie back to the A-share market as the research object.First introduced the background of Qihoo 360 backdoor listing,and the purpose and significance of our case study.Secondly,the viewpoints and theories related to the backdoor listing documents are sorted out,which lays a theoretical foundation for the introduction of this article.Re-introduce the basic situation of Qihoo 360,a backdoor listed company,and Jiangnan Jiajie,a "shell" company,as well as the process and plan for Qihoo 360 to return from the US to the A-share market.Then use the event research method to calculate the excess return rate and cumulative excess return rate of the Qihoo 360 backdoor event,reflecting the short-term market performance of the Qihoo 360 backdoor listing event;calculating the BHAR through the Qihoo 360 monthly return rate to reflect the Qihoo 360 backdoor Long-term market performance in the last 2 years;Qihu 360 backdoor was calculated by the financial ratio method from 2014-2018 profitability index change,debt solvency index change,business capability index change,development capability index change,and the same period with Compare the average level of the industry.Analyze the financial performance of Qihoo 360 before and after the backdoor from the horizontal and the industry average and vertically and before and after its own backdoor;through the EVA analysis method,calculate the before and after backdoor of the company,which is The company’s EVA,to illustrate the growth of shareholders’ wealth before and after the company’s backdoor.Finally draw conclusions and recommendations.This article analyzes the market performance and financial performance of Qihoo 360 before and after backdooring through three different analysis methods: long-and short-term event research,financial ratio analysis,and EVA analysis.The conclusions are:(1)In terms of market performance.Qihoo 360’s short-term market performance has greatly improved in the backdoor Jiangnan Jiajie event.After the November 2017 resumption,it has only been in a row of 18 straight daily limit and the excess return rate has reached 410%,which has brought huge wealth effects to investors.The sharp rise in the stock price in the secondary market shows that this backdoor event has been recognized by the majority of investors.(2)In terms of financial performance.Qihoo 360’s financial performance after backdooring has been improved in terms of profitability,solvency,operating capacity and development capacity.The company’s operating conditions have improved,EVA value has increased year by year,and shareholder wealth has increased.These all indicate that backdoor listing to the company Brings positive financial performance.(3)From the privatization delisting backdoor listing itself.Qihoo 360 successfully delisted from the privatization of the US capital market.In the context of the “most serious new regulations” of the China Securities Regulatory Commission,it not only found the right shell resources,the correct backdoor model,but also fully enjoyed the capital dividends of the A-share market.Through the research on the motivation,process and performance of Qihu 360 backdoor,the recommendations are as follows:(1)For listed companies intending to backdoor.First of all,we must choose a reasonable excuse model.The backdoor model suitable for the specific situation of the company is crucial to the success of the backdoor listing;secondly,we must pay attention to performance and eliminate hype.The market performance of companies without performance support is unsustainable;again,we must choose the correct "Shell" resources are to choose the best "shell" resources suitable for your company’s development path and operation mode.(2)For investors.First of all,we must choose the investment target rationally and avoid blindly following the trend.Although many backdoor event stocks bring investors a very significant excess rate of return in the short term,most of this excess rate of return is difficult to sustain,so it is not allowed to blindly follow suit;the second is to pay attention to company performance.Good business performance is the prerequisite for the company’s sustained and stable development.(3)For regulators.First of all,we must improve laws and regulations,pay attention to information disclosure,formulate special laws and regulations,and standardize the order of the capital market;secondly,strictly control insider trading,implement market supervision,and the regulatory department should strengthen supervision of the company ’s listing process and information disclosure,and severely punish insider trading,etc.For violations of laws and regulations,the system of survival of the fittest is implemented,and “full supervision,supervision by law,and strict supervision” is implemented.