Legal Research On The Delisting System Of The Listed Company In China

Delisting refers to the removing of the securities of a listed company from listing on a stock exchange. As long as a listed company falls below certain continued listing criteria, which the Exchange has adopted, to a certain degree, the delisting occurs. The delisting mechanism is necessary for the development of the securities market, especially, in consideration of the optimal resource allocation function of market; it is also the requirement of the principle of "survival of the fittest" in the market; furthermore, delisting mechanism will exert pressure on the listed companies to help bettering the corporate governance and establishing the scientific and sound mutual conditionality, thus, in turn, to improve the quality of listed companies as a whole. Although china has adopted the delisting policy and put it in practice on the section of the deficit companies ,but the unique function of delisting mechanism, "get rid of the stale and take in the fresh", has not been fully deployed in china's securities markets. This requires that no efforts should be spared in improving the existing delisting mechanism.The system of delisting has been developed for a long period in the western developed countries. Now it is perfect. Their experiences are very helpful for Chinese legal construction. In China, the establishing of the system of delisting has come through a flexural process. In the 1994, the system was provided in the company law in the first time. Later it was repeated in the securities law. In the implement process, it turned into ST and PT. Today the system wasn't be put into practice really. There are many factors that influence the implement of the system, for example, the system itself has defects, the administrative organ can't strictly execute the law, the participant lack the spirit of rule of law, and so on. The aim is to provide with some advises.The author believed that, why we can't perfectly provide the delisting legal system. First of all, because of the theory goes on the delisting discussion not be mature. For example, the delisting standards to be unitary, the delisting procedures feasibility not to be strong and lack of the information to be disclosed and lack of insufficient managing. How enables the law to stick with execution is able to be the question which this article needs to solve. Then, the delisting standards and delisting procedures not to be add together simply. It connects another relative system of stock market indeed. How to make the delisting standards and delisting procedures to have the rationality and to be operational; how to process the jurisdiction question; how to strengthen the function of...