What is backdoor financing for housing enterprises?

Housing enterprises borrow money because it is very difficult for housing enterprises to go public directly. There used to be policy restrictions, but then there were no more. But after all, the funds raised by the listing of real estate enterprises are used for hoarding land and developing real estate, not for production and operation, and it is difficult to get approval.

Therefore, real estate enterprises can use the shell of listed companies, inject assets into listed companies, or reorganize assets through asset replacement and private placement acquisition, so as to achieve the purpose of financing through the capital market.

Backdoor listing is a financing method. Financing methods include listing financing, which includes domestic listing financing, overseas listing financing and shell listing financing. Therefore, backdoor financing is a way of listing financing.

There are eight channels for enterprise financing: debt financing; Equity financing; Internal financing of enterprises; Project financing; Trade financing; Specialized and cooperative financing; Policy financing; Listing financing.

Backdoor listing generally involves a large number of related transactions. In order to protect the interests of small and medium-sized investors, it is necessary to fully, accurately and timely disclose the information of these related transactions in accordance with relevant regulatory requirements.

Extended data

The actual case of backdoor listing;

1, PCCW digital power supply;

1In April, 1999, PCCW, a subsidiary of Li Zekai listed on SGX, injected its assets, including the development right of Cyberport, into the listed company Dexinjia and obtained about 60% equity. Stimulated by this news, Dexinjia's share price is less than 0. 1 Hong Kong dollar has risen to single digits, which has increased several times. Later, Xinjia changed its name to PCG Digital Power.

2. Yingke Dayan Real Estate;

In May 2004, PCCW spun off its real estate business, including North Shawan (the real estate part of Cyberport), Pacific Century Center, PCCW Center, other investment properties and related property and facility management companies, and injected them into the listed company Dongfang Gas, renamed it PCCW Dayan Real Estate, and reduced its shareholding in PCCW Dayan Real Estate through rights issue, cashing in about HK$ 300 million.