The Analysis On Motivation And Performance Of Privatization And Backdoor Listing Of The 360,One Of The China Concept Stocks

Many companies have chosen to list abroad due to the differences between inside and outside the country on their strict requirements and listing cycles,as well as the imperfection of the early domestic capital market.However,in recent years,after experiencing the baptism of overseas capital market,such as depressed stock price,hostile takeover,short seller attack,etc.,many Chinese companies,such as Perfect World,Giant Interactive,Jiayuan,Qihoo and so on,choose to privatize and backdoor listing with the rapid development of China's capital market.The method that Chinese concept stocks returns A to appear on the market can choose IPO,like Storm Group,but in recent years,the majority of Chinese stock options to choose the way of backdoor to go public.360 was privatized in 2015 and after more than two years,it was successfully backdoor listed on the Shanghai stock in February 2018.Then,360 which has certain representativeness becomes the largest company in China concept stock regression A-share.In this paper,the motivation and performance of privatization,delisting and backdoor listing of Chinese companies are summarized and sorted by literature research.After that,360 was chosen as the research object and adopted the case study method to study the motivation,process and performance of its privatization and backdoor listing.In view of the backdoor listing performance,on the one hand,this paper adopts the event study method to compare and analyze the market performance of 360,other representative Chinese stock to board backdoor listing companies and domestic companies that use backdoor listing for the first time to be listed.On the other hand,the financial index method was adopted to analyze the financial performance of 360,and the industry mean value was used for comparison.Finally,this paper put forward some recommendations based on the analysis of the full text of the case summary.Results show that due to the valuation differences between domestic and overseas markets,overseas short-seller blow,domestic policy,the company's share price has long been underestimated,and the development of corporate strategy,the 360 started in 2015 andannounced privatized in July 2016.Finally,the 360 chose the shorter backdoor method to go public after the dismantling of the VIE structure,due to the debt pressure generated in the privatization process.Through the use of event method for analysis of the market performance brought by the 360's backdoor listing,it is found that both the Chinese concept stock return and the domestic company's initial listing have favorable attitude towards the backdoor listing,which can bring higher excess returns and cumulative excess returns to the company.However,due to the differences in company size and popularity,360,as the largest Chinese concept stock company,has achieved excellent short-term market performance.In addition,through the financial index method,it can be concluded that the backdoor listing improves the capital structure,alleviates the debt pressure brought by privatization,thereby improving the company's solvency and profitability.Finally,the paper summarizes the full text and points out that companies intending to list should rationally look at the differences between domestic and overseas capital markets and listing methods,and choose suitable listing locations and listing methods.