Study On Delisting Of Listed Companies

every company’s development target is to complete the listing in the stock market through IPO, for they can rapidly expanding the size of their business if they raise enough capital form the stock market. Then it seems that IPO have become the ruler of being an outstanding enterprise. Today, however, we hear a lot of news that many enterprises exit from the stock market in the case of well-run. They had raised enough financial capital in the stock market they need for development. Now they are gown, repurchase the rest of the shareholders. Then they quit the capital market and grasp the company completely in their own hands. This is not what we usually call "delisting"-the company’s shares in the stock market suspend or terminate the transaction legal acts because of the financial risk and operating difficulties. In capital era, huge leverage effect of the capital market for companies can create economies of scale and economies of scope, every company want to get enough development funds through the capital market, the delisting of this act are not we are usually familiar with. However, the misappropriating of financing is not the ultimate purpose of the enterprise’s development, the aim should be the pursuit of maximizing corporate value, when the enterprise meet development bottleneck, the pressure applied by investors can not allow radical reform, withdraw from the market can become ice-breaking move to retreat.This paper firstly systematically expound the theory of privatization of listed companies delisting system, mandatory delisting system, active delisting system and the way withdrawing from the market. Then cite Ali Baba privatization this event as an example to deeply explore the entire privatization process, motivation, strengths, weaknesses and threats. In the theory, we have summarize the law of privatization, and once again we use the Alibaba privatization case corroborate this law and summed up the factors of privatization delisting success. In this paper we analyze the impact of privatization on the capital markets, it promote to corporate governance structure, as well as protect the interests of small and medium investors.