A Study On The Delisting Mechanism In China's Secerities Market

Delisting refers to the moving of the securities of a listed company from listing on a stock exchange as long as a listed company falls bellow certain continued listing criteria, which the exchange has adopted, the delisting mechanism is the requirment of the principle of the "survival of the fittest" in the market, it is also a significant measure to assure the healthy runing of the securities market and to complete the resouce allocation function of the securites market. It is unhealty for and unmatue of a securities market if it without an effective delisting mechanism.In the comparation of delisting mechanism in the market around the world, the delisting mechanisms in the NYSE, NASDQ, TSE and HKES are advanced and could be a modle for the delvelopment of our delesting mechanism. In general speaking, the mechanism in our market is complete though not perfect, it could perform a certain function in the quality maintianing of listed company, but in practice, the effect of this delisting mechanism is far behind what it is expected. one of the reasons for the inefficiency is inadequacy of the machenism, but there are still much more deep-going reasons except the inadequacy of the mechanism itseft, such as the alternative enforcement of law and regulation by the CSRC, the interference by the local government of all level, the heavy inadequancy of so-called shell resouce, the lack of conviction of rule by law, etc.