Research On The Selection Of Shell Companies In Asset Restructuring

In China,Companies need to pass the strict examination and verification of the securities regulatory body,and can only get the listing qualification after being approved.As more and more enterprises hope to land in the capital market,the IPO process has been hampered,through the backdoor listing has become a hopeful way to land in the capital market as soon as possible.In order to support high-quality enterprises to participate in the mergers and acquisitions of listed companies,the CSRC has launched mergers and acquisitions restructuring system reform.Based on this background,this paper considers the necessity of backdoor listing,how to choose a suitable shell company and the consequences of improper shell selection in three stages: pre-backdoor consideration,shell selection and post-transaction integration.In order to study the selection of shell companies in asset restructuring,this paper analyzes as follows.Firstly,this paper briefly introduces background and significance of the research,and then puts forward the research innovation points on the basis of summarizing the previous researches.Secondly,the paper studies from the theoretical part to lay a foundation for the following analysis.Thirdly,focusing on the background of backdoor listing,this paper briefly describes the development of China's securities market and shell company restructuring.Then,a brief introduction is made to the case of the relevant parties and the trading background.Furthermore,the case is analyzed from three stages,including before backdoor transaction,during backdoor transaction and after backdoor transaction,to explain the motivation of backdoor listing and summarize the selection characteristics of shell companies.Finally,draw conclusions and enlightenments.The research shows that :(1)through the cost comparison of different listing methods before the reorganization,the backdoor listing method adopted by Lingyi Inc.can save the cost of time;(2)based on the risk perspective,the shell company JPMF is a non-gem enterprise and has business synergies with Lingyi Technology,which is in line with the regulatory methods of the CSRC;(3)based on the perspective of profit,the shell company JPMF has the characteristics of concentrated equity and belongs to private enterprises,saving the cost of transaction in the negotiation;(4)the evaluation and analysis of the backdoor effect after the reorganization showed that the company ignored the warning of financial risks and made a loss due to its listing in the non-net backdoor.Therefore,through theoretical analysis and case analysis,here are some implications :(1)the premise of choosing shell companies should be that backdoor listing has a comparative advantage over IPO listing;(2)when choosing a shell company,cost minimization should be the goal,and the risk and profit factors should be considered comprehensively;(3)conduct a detailed investigation of shell companies during the backdoor restructuring transactions.