China's Stock Market * St Delisting Risk Analysis

The Premier Wen Jiabao suggested that there are 5 ways to improve securitiesmarket. Among these ways, to improve the listed companies quality is the mostimportant. During the development of Chinese securities market, Chinese SecuritiesRegulatory Commission promulgated the regulations on listed company delisting inthe securities market in 2001. Dozens of listed companies stopped securities tradingafter 2001. However, there are still many listed companies performing poorly listed inthe securities market, which returned much lower than bond interest rate, and somelisted companies are even not worth investing. This essay includes six parts.The preface introduced the purposes of this essay, defined the concepts of ST,*ST and PT related to listed companies, and discussed the relations between them.Part I introduced the related regulations on listed companies' delisting ondomestic and foreign Stock Exchanges.Part II includes the definition of Earnings Management, and researches onmotivation of Earnings Management by domestic and foreign experts.Part III put forward the standards to judge if the *ST companies have the risk ofdelisting, and analyzed the risk of delisting from Balance Sheet and Income Statement.Meanwhile, this part also validated the risk on the example of listed company.Part IV analyzed the advantage and disadvantage of listed companies' delisting.Part V summarized the results of this essay. The results are: if one company cannot operate continually or can not increase the wealth of investors, the companyshould be delisted. Meanwhile, this essay advanced some policies and advices onaccounting information exposure, law and securities market construction.