Relationship Between IPO and Company Development Based on the Case of Poten Enviro

Abstract: The stock market crash in early 2024 in China has sparked criticism from investors regarding the current Chinese IPO system. There has been extensive debate on whether IPOs should serve as a venue for financing for companies facing internal and external development difficulties and questionable profitability, and whether the interests of shareholders should receive better protection. To delve deeper into the issues surrounding the Chinese IPO system, a listed companyPoten Envirohas been selected, and a comprehensive review has been conducted on its development history, internal and external challenges, IPO process, financial irregularities, and other related behaviors. The company should proper analyze the external environmental changes, and the IPO should not be pursued blindly. Also, the regulation institution should strengthen supervision of listed companies to avoid losses for the public. This study will be beneficial in providing insights for the reform of the Chinese stock market and offering guidance for strategic decision-making by enterprises.