Backdoor listing speculators flee

New regulations make such listed companies less attractive as acquisitions since they cannot be used for asset restructuring

With tightening regulation of backdoor listings, privately-offered funds are moving out of their earlier investments in listed companies that were speculated to be acquisition targets of unlisted firms seeking to avoid the lengthy formal listing process.

China's securities regulator released revised regulations on the major asset restructuring of listed companies in September to curb backdoor listings. The regulator sought public comments on the draft of revised regulations from June 17 to July 17.