Research On The Motivation And Effect Of JA Solar Backdoor Listing

Since mid-2010,with the terrible conditions for enterprises with China concept stock in USA,many enterprises concept stock began to privatize and delist,planned to return to the domestic A-share market in order to seek better development opportunities.Because,the backdoor listing threshold and issuance cost is low,and shorten the approval process and time compared with IPO,so it has become a priority for many enterprises that are eager to obtain funds from the capital market for development.For the photovoltaic industry,the "531 New Deal" in 2018 has had a negative impact.The new policy is both a crisis and an opportunity.In this paper,we choose a research case of buying a shell from Tianye Tolian by JA Solar’s,to analyze and study the motivation and effect changes of JA Solar’s backdoor listing.Firstly,through reading and combing a large number of domestic and foreign literatures,to elaborate the related concepts、performance evaluation methods、transaction modes and processes and theoretical basis of backdoor listing.Secondly,it discusses the whole process of JA Solar’s backdoor,there are four main points: first,the support of national policies to the photovoltaic industry,Second,high-quality shell resources,third,expand financing channels,fourth,enhance the competitiveness of the industry.Then,based on the financial index analysis method and event research method,this paper analyzed the financial effect and market effect of JA Solar’s backdoor listing.It’s found that from the financial effect,the solvency、profitability、operation ability and development ability of enterprises have been improved,after the backdoor,the enterprise has considerable room for development;From the perspective of market effect,backdoor events help enterprises realize the intention of privatization return,give full play to the advantages of industrial chain integration,and maximize the financing effect of enterprises.Finally,after combing and analyzing,it is found that there are three major problems in JA Solar’s backdoor Tianye Communication,they are asset-liability ratio is too hifh、fluctuation range of stock price is too large after borrowing and insufficient development ability of the company,and there is risk of exchange rate fluctuation,then analyzed the reasons,and some suggestions are put forward,such as strengthening the stability of operation,improving the industrial chain,enhancing investors’ confidence and actively innovating to deal with the risk of exchange rate fluctuation.