A Case Study On The Return Of 360 Privatization Backdoor Listing

In recent years,in order to raise financing funds,many domestic Internet companies have chosen to go abroad for listing due to the restrictions on investment in the Internet industry,which are also known as "China Concept Stock".However,because of undervalued value,high transaction costs and frequent sniping by short-sellers,overseas listed companies have chosen to privatize and delist.At the same time,after more than 20 years of development and improvement,the domestic A-share market system has become more excellent.As the domestic capital market pursues and reshapes the value of China concept enterprise,overseas delisting companies are seeking opportunities to return to A-share as soon as possible through backdoor listing.Backdoor listing refers to a non-listed company merging a listed company by statutory mergers and acquisitions,then injecting its own assets and business into the target company,thus indirectly making the company listed.Backdoor listing is a means of listing which shortens the time of listing and simplifies the listing procedure.It is a financing method of backdoor listing under the environment of great economic development.Qihu 360,a wellknown Internet company in China,was privatized and delisted from the United States in 2016.On December 29,2017,it successfully returned to the A-share market by backdoor SJEC.This paper analyses the process of Qihu 360's privatization delisting and the motive of its privatization delisting,and analyses the specific scheme and potential risks of its backdoor listing returning to A-share,and finally evaluates the economic consequences of the 360's backdoor listing.Through this typical case,this paper provides reference and Enlightenment for the following China concept enterprise who want to return,capital market regulators and investors.