(Yicai Global) Aug. 21 -- Backdoor listings have lately come back into vogue on the A-share market with a vengeance.

After Jiangsu Tongda Power Technology Co. [SHE:002576) and JPMF Guangdong Co. [SHE:002600] sneaked in the backdoor last month, Jiangsu Wujiang China Eastern Silk Market [SHE:000301] has devised a backdoor listing plan with a range of up to USD1.9 Billion (CNY12.762 billion).

This time, however, the one proposing to house its A-shares in a hermit crab shell is polyester filament production firm Guowang High Tech Fiber Co.

It is also the latest case of mixed-ownership reorganization of a local state-owned enterprise in central China's coastal Jiangsu province. Wujiang China Eastern outed a key draft yesterday in which the company put out its feelers for a private issue of 2.757 billion shares to Jiangsu Shenghong Chemical Fiber Co. and CDB Capital Co. for CNY4.63 per share, and has bought 100 percent of the shareholding of Guowang High Tech Fiber. The transaction has a value-added rate of 120.83%. Guowang High Tech Fiber is expected to become the wholly-owned subsidiary of the listed company.

After the transaction, the controlling shareholder of Wujiang China Eastern Silk will be Shenghong Chemical Fiber, and the actual controller will shift from the state-owned asset bureau of Wujiang District, Suzhou City -- with 37.52% of shares -- to Miu Hangen and his wife Zhu Hongmei. Shenghong Chemical Fiber and persons acting in concert hold 68.32% shares of the listed company.

This deal will also lead to a change of the main business of Jiangsu Wujiang China Eastern Silk, which was formerly power, heating, commercial property rental, real estate development and trading platforms. Afterward, its main business will become developing, manufacturing and selling personal-use polyester filament, with supplementary lines in electric power, heating and other businesses.

This reorganization also marks an important step in local SOE reorganization to mixed-ownership.

However, the move requires approval from the listed company's shareholders' meeting, Jiangsu's provincial government and state-owned asset department, as well as the China Securities Regulatory Commission, so uncertainties are rife, the company cautioned.