Research On The Performance Evaluation Of Backdoor Listing Of B Company

With the continuous development of Chinese securities market,listing can bring many advantages to companies,such as helping them broaden financing channels,increasing visibility and helping them to transform their strategies.Due to the postponement of the registration-based IPO system on the main board and the relaxation of backdoor listing on the creative board,some companies hope to enter the capital market by backdoor listing.Looking back on the situation of domestic backdoor listing,speculation behaviors had occurred frequently in the shell resource market,which seriously affected the orderly development of the capital market.Therefore,China Securities Regulatory Commission formulated more stringent verification standards in 2016 to regulate the order of the shell resources market.There were 34 backdoor listed companies on the A-share in 2014 and 25 backdoor listed companies in 2015.After the most stringent new regulations were introduced,there were 10 backdoor listed companies in 2017 and 2018.With the operation of the shell resources market gradually getting on track,China Securities Regulatory Commission in 2019 facilitated the backdoor listing of high-quality assets by relaxing the regulatory requirements for backdoor listings.Therefore,a total of 15 companies listed on the backdoor successfully in 2019 and 2020,which increasing 50%.Under the influence of Healthy China and COVID-19,the market demand in the genetic testing industry has increased significantly and the industry has developed rapidly.Under the strictest regulatory requirements,as a well-known genetic testing company,B Company achieved backdoor listing successfully,and its behavior and effect of backdoor listing are worthy of in-depth study and discussion.This thesis adopts the literature analysis method,case analysis method and comparative analysis method,and combs the related literature of backdoor listing.Based on the theory of backdoor listing such as rent-seeking theory,information and signal theory,this thesis analyzes the motivations of two parties’ backdoor and relinquishment in this transaction.On this basis,the event research method is used to evaluate the short-term market performance between the backdoor listing of B company,and it is found that the backdoor listing has realized the increase in the wealth of B company shareholders.The financial index method and factor analysis method are used to compare the financial data of B company horizontally and vertically.lt is found that the profitability and development ability of B company have been improved,and the debt solvency has become more reasonable.Besides,backdoor listing has made B company stable in the forefront of the industry.Finally,by summarizing the reasons for、the successful listing of B company,this thesis hopes to provide experience for other companies who wants to go backdoor and offers some suggestions for the future development of B company.