| After undergoing a one-decade development, market functions like capital raising and material allocation, have performed fairly satisfyingly in Chinese securities market. A securities law system has been established, with the Company Law and the Stock Act as the principal part. The market's ability over risk control has been consistently strengthened. However, to a large extent, some characters of the market in China still show its immaturity. Such immaturity is especially obviously demonstrated in lack of channels for withdrawal from the securities market, and the obstacles confronting the listed company when a withdrawal is initiated. Some stipulations have been formulated in our law on stoppage of securities issuance, while up to the present, none stoppage has been carried out on any listed companies. Basing on understanding of the above situation, starting with the importance of securities market construction, I intend to analyze the comparatively mature securities market withdrawal system developed in other countries and areas, to figure out disadvantages of the system in China. By learning from those successful experiences, I propose tentative ideas on an sophisticated securities market withdrawal system. Methods for the withdrawal of listed companies from the securities market might take diversified forms. While my thesis paper would emphasis on forced withdrawal, i.e., the listed company is stopped from issuing securities under resolution of administrative authorities, or a decision for the company's withdrawal is announced by the stock exchange due to its failure to meet conditions for nominal quotation in the securities market. (so-called removal of nominal quotation); the formulation and improvement of forced securities market withdrawal system is the precondition of the occurrence and standardization for withdrawals of other types. Establishment and improvement of the securities market withdrawal system, which helps to add pressures to listing companies, give full play to securities market performances, and offer larger space for capital raising before entering the market, is not only necessary but also crucial for the market in China. In addition, at present, the positioning of securities market functions in our country is far too simplistic, causing the unstable administrative policies, the lagged-behind regulation construction, thus posing obstacles for the set-up of laws and regulations on securities market withdrawal. Aiming at these existing obstacles, I would make an analysis on shortcomings lying in our regulations and system, hence work out tentative ideas for establishing and improving our securities market withdrawal system. l. Positioning of securities market functions, which serves as foundation for discussing market system construction.Reposition securities market performance, from the single function of capital raising carried out by state-owned enterprises to the function of market services. This is the foundation for discussing any securities systems 2. Setting up an examination format that gives consideration to both equality and fairness of securities issuance. The listing entrance system might be the key reason causing difficulties in withdrawal of listed companies from the securities market and lack of "Shell Resource".Therefore, l considered it necessary to found a market entrance permission system, so as to reduce obstacles for market withdrawal. 3. Formulating laws to improve the securities market withdrawal standards and procedures for such withdrawal.Concerning standards of securities market withdrawal, it is advisable that two conditions added to the original regulation-three-year deficit in succession:l) The company could not go on with its operation, which is judged from three aspects â‘ Company assets fail to meet its liabilities,â‘¡All or most of business has ceased to operateâ‘¢Most assets have been confiscated, distrained, frozen, auctioned, sold off rented or have suffered from natura1 or artificial damages.2) The c... |
