Research On The Motivation And Performance Of The Overall Listing Of Wuchan Zhongda Group

Since the reform and opening up,China’s economy has developed comprehensively and the economic system has been gradually improved.The market economy has gradually developed into the mainstay.In order to stimulate the vitality of state-owned enterprises and break through the old structural constraints,the Third Plenary Session of the 18th CPC Central Committee proposed to further develop mixed ownership economy,make every effort to promote the securitisation and marketisation of state-owned capital,promote the establishment of a sound modern enterprise system and a sound corporate governance structure for stateowned enterprises,and pointed out that the overall listing is a key initiative in the reform of the shareholding system of state-owned enterprises.Wuchan Zhongda Group is the first company in Zhejiang Province to achieve mixed reform through a full listing,and its overall listing process also includes the introduction of private strategic investors and employee share ownership plans.This paper explores the motivation and impact of the IPO on the performance of Wuchan Zhongda Group,in the hope that it can provide reference for subsequent companies that choose to go public as a whole.This paper firstly reviews the current state of research on the classification of the model of the overall listing,its motivation and its impact on corporate performance,and gives a definition of the concepts involved and the theoretical basis required for this paper.A basic overview of Wuchan Zhongda Group and the detailed process of the IPO are presented,and the motivation for the choice of the IPO and the reasons for the model selection are analysed.Based on the motivation,a comprehensive corporate performance evaluation system is constructed using financial and non-financial related indicators,bridging the gap of previous scholars’research methods,i.e.the quantitative study of non-financial indicators.Secondly,the impact of the overall listing on the financial performance and non-financial performance of Wuchan Zhongda Group was studied.The financial performance of the company was analysed based on traditional financial indicators and economic value added(EVA).The impact of the overall listing on the non-financial performance of the company is analysed in a comprehensive manner from six dimensions,including shareholding structure,governance structure,connected transactions,interbank competition,financing capability and R&D innovation.The effects of the overall listing on some of the performance improvements are pointed out,including the improvement of profitability and operating capacity,modernisation of the corporate management system,improvement of financing capacity and promotion of corporate R&D and innovation capacity.Finally,management suggestions are made to address the problems that remain after the overall listing,such as poor cost control,insignificant long-term improvement in connected transactions and high gearing.The significance of this paper is that in terms of theory,it can enrich the research on the overall listing of state-owned enterprises and supplement the types of methods and indicators for evaluating the performance of overall listing;in terms of practice,it can summarise its experience and shortcomings through case studies,and provide practical experience and decision-making reference for more state-owned enterprises that are trying to better promote the new round of state-owned capital and state-owned enterprises reform and adopt overall listing to achieve mixed reform.