Because of the initials of HongKong, it is called H shares. Similarly, companies registered in the Mainland are listed as S shares in Singapore and N shares in new york. The stocks of listed companies in China are divided into A shares, B shares, H shares, N shares and S shares. This distinction mainly depends on the place where the stock is listed and the investors it faces. A company can issue A, B and H shares at the same time, depending on the approval of specific departments.
The so-called backdoor listing means that non-listed companies buy a certain proportion of shares of listed companies through the securities market to obtain listing status, and then inject their related businesses and assets through "reverse acquisition" to achieve the purpose of indirect listing. Non-listed companies can use the ability of listed companies to raise funds in the securities market and serve the development of enterprises.
Generally speaking, listed companies purchased by enterprises are all companies whose main business is difficult. After an enterprise acquires a listed company, in order to achieve the purpose of financing in the securities market, it will generally inject some high-quality assets into the listed company, so that its performance can meet the standards set by the management for participating in the rights issue. In addition, the better the performance of listed companies, the higher the rights issue price and the more funds raised by enterprises.
Backdoor listing has incomparable advantages over direct listing. The most prominent advantage is that the shell company's profitability has been greatly improved due to asset replacement, and its value in the stock market may increase rapidly, so the value of equity purchased by enterprises may also increase exponentially, and the income obtained by enterprises may be very huge.