Chinese Securities Companies On Exit Mechanism

Since sept. 1987, the first security firm:"Shenzhen special zone security firm"was founded , 19 years has passed. In these years, both the quantity and quality of the security firms developed rapidly. As one of the most important part in the security market, these firms have made great contributions to our economic society. However, there were still a lot of questions in the operating of these firms, moreover, the security market act rather bad in the recent years, the risks accumulated in the earlier time have been exposed, some"troubled-firms"even been disposed by China's Securities Regulatory Commission by means of closedown. Due to the absence of the withdraw mechanism, the troubled-firms could not find a reasonable way of withdrawing in a long period time. Look down to the practical dispositions of the troubled-firms, we can see that the majority of them were guided by the government, in this way, the market mechanism was interrupted. Therefore, it is imperative to establish a reasonable withdraw mechanism for the troubled-firms. In this article, we attempt to make a suggestion to the establishment of reasonable withdraw mechanism for our security market on a basis of theoretical analysis and a study of foreign advanced experience. This article is divided into four chapters:Chapter 1, in this part, we first make a brief review on the history of the development of our security market and security firms. In these 19 years, china's security firms have experienced a rapid development. Yet, there were still series of problems behind the blossom scene, such as the absence of the ownership, the irrational company management structure and etc., on the other hand, sine the primary business of the Chinese security firms depend heavily on the security market, especially the performance of the secondary market, a long-term downturn came with the adjustment of the Chinese security market. Coupled with the exposure of the risks accumulated in the earlier operating, some"troubled-firms"were forced onto the delisting roads.