A Study On Motivation And Performance Of 360's Back-door Listing In A-share Market

In November 2017,the well-known Internet security service company 360 back-door listed in A-share market successfully by merging JiangNanJiaJie and became the largest Internet company that has successfully returned to A-share market.In the practical sense,the research on the privatization of 360,the dismantling of the VIE structure model and the financial performance of the company after returning to the A-share market is of guiding significance for the Chinese concept shares that hope to return to A-share market in the future.The above cases are selected in this paper.Firstly,relevant concepts such as Chinese concept shares,privatization,backdoor listing and basic theories related to privatization and mergers and acquisitions are introduced,and research literatures on privatization,regression of Chinese concept shares,360% backdoor listing and merger and acquisition performance are sorted out by domestic and foreign scholars.Secondly,introduced the 360 backdoor JiangNanJiaJie returned before landing a-share scheme and its privatization delisting and demolition of the VIE structure,preparation,privatization and again in the 360 listed as A unified behavior,on the basis of deep analysis of the return to A shares of more than 360 drivers,including across national policy support,market arbitrage,maintenance cost is high,the short-seller sniper,financing strategic shift,business development needs,and enhance brand awareness.Again,was analyzed by using the event study method and the accounting method,respectively,the 360 return to A shares of financial performance,including: event study to 30 trading days before and after the event day for the event window,select event window period before 240 trading days as clean,normally expected yield is obtained by using the market model method,the actual day returns with the expected normal returns of listed companies as A comparison,calculation,supernormal returns(AR)and cumulative abnormal returns(CAR).The results show that the purchase of the JiangNanJiaJie in the reverse direction by 360 has caused the listed company's share price to have a significant positive financial effect.The market reaction is fierce and this event has created value for the company.Accounting method of before and after the 360 return to debt paying ability,operation ability,profitability and shareholder profitability trend analysis of key financial indicators,and select Xinhua Net,Venustech and Sanqi Interactive Entertainment,A total of three similar to the 360 business model of a-share listed companies as A comparable companies,key financial indicators for comparative analysis,the conclusion is: After the backdoor listing,the debt paying ability was significantly improved and the operating capacity was not significantly changed.Although the gross profit rate of main business remained at a high level in the profitability,the return on equity and earnings per share declined,which was inconsistent with the results of the event research method.In view of this,this article collects 360's public information such as resignation of company executives.Then this article combines the non-financial performance with financial performance analysis to explain the deviation.Finally,through a summary of the case,it is pointed out that overseas Chinese concept shares should consider carefully about regression decision.The return has advantages and disadvantages for the domestic capital market,and it affirms whether the return has improved the company's value.In the long run,Chinese concept shares should pay more attention to their own management,and if determined to return,they should choose the return path that suits them.In addition,this paper also presents a prospect for the return model of Chinese concept shares in the future.