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In2010, Shanghai Pharmaceutical Co, Ltd experienced convertible merger, issuing shares to buy assets as well as IPO in the Hong Kong stock exchange market. Based on this case, we did a feasibility analysis on the similar case of IPO of Shanghai Friendship Group Incorporated Company in the Hong Kong stock exchange market. In the end, the analysis showed that the industry stage of development, the basis of assets, capital structure, and the quality of earnings and cash flow of Shanghai Friendship Group Incorporated Company are in line with the listing requirements of the H-shares. Friendship shares listed H-shares, will be conducive to the friendship of shares:firstly, it will supply plenty of low-cost funding for the development of enterprises required. So that friendship shares can seize the opportunities of the development of the industry, in order to enhance the industry leadership of friendship shares; secondly, if friendship shares listed H shares, it will bring global awareness to enhance and improve corporate governance structure of friendship shares.However, in order to list H shares abroad, friendship shares must also achieve:1, making every effort to establish and improve the modern enterprise management system, as well as listing of the H Shares enacted perfect executives appointment and removal, authorized a series of rules and regulations. At the same time creating a corporate culture, reduce the drawbacks of the previously state-owned enterprise legacy, to avoid the shock of high-level management personnel and executives flee.2, In this paper, we analysis Shanghai Friendship Group and makes the conclusions and recommendations, is very important to Shanghai Friendship Group’H shares list.3, Author, about6months internship in the Haitong Securities M&A Finance Division, has accumulated a lot of knowledge about the industry and is able to get first-hand information about the Shanghai Friendship Group.
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