Research On The Application Of A H-Share Listed Enterprise Converting Shares To Merge An A-Share Listed Enterprise

The exchange of shares and mergers between listed companies is not only driven by market competition,but also the current need to improve the quality of Chinese listed companies.The listing places of Chinese enterprises are diverse,and Chinese enterprises are listed and traded on more than a dozen stock exchanges around the world.With the further activity of the M&A market,the number of share swaps between enterprises listed on different capital markets is expected to continue to increase.The merger of a H-share enterprise with an A-share enterprise is one of the more mature forms,and the study of such M&A cases has strong practical significance.The merger of Gezhouba by China Energy Engineering Corporation is the latest case of the "H merging A" model,which provides a practical experience with operability for the subsequent "H merging A" enterprises and has certain research value and reference significance.This paper first clarifies the pertinent articles and relevant theories.Secondly,the application of a H-share enterprise converting shares to merge an A-share enterprise is analyzed,and the current situation,advantages and disadvantages,risks and scope of application of this model are briefly introduced.Then,combined with the specific case of China Energy Engineering Corporation merging Gezhouba,this paper sorts out the industry background,basic information of both parties,scheme design,and merger process of this merger.It conducts a comprehensive exploration and analysis on the reasons to implement the stock exchange merger,the rationality of the stock exchange ratio and cash option,as well as the changes in the overall value and financial performance of the enterprise after the merger.Through the study of this case,this paper finds that: 1.The model of a H-share enterprise exchanging shares and merging an A-share enterprise has a certain scope of application;2.The scheme design of China Energy Engineering Corporation and Gezhouba for share exchange and merger has certain reference significance;3.The long-term financial performance of the equity swap merger between China Energy Engineering Corporation and Gezhouba still needs further research.At last,the paper puts forward corresponding countermeasures and suggestions on how to better implement stock exchange mergers.