The Legal Analysis And Regulation For Listed Companies’ Rename Phenomenon

In recent years, the enthusiasm of rename action of China’s listed companies in securities market ran high. The phenomenon that a company’s stock price limited up as soon as they changed their stock abbreviations is not uncommon. Scholars’ empirical research about listed company’s rename effect shows that the market has excessive reaction to the rename announcement of the stock, rename action caused abnormal fluctuation of stock price, and their research also finds that the stock price has significant positive abnormal return and abnormal trading volume.It is no ground to blame that listed companies changed their main business because of strategic transformation and changes hands and therefore changed their stock abbreviations, this is the normal exercise of their right of name. Nevertheless, not all the rename actions were motivated by the essential needs of the development of the company, some companies tried passing off fish-eyes as pearls.This article has mainly studied the exercise of name rights and the validity of rename action of listed companies combined with the analysis of relevant laws and regulations and business rules of The Stock Exchange. We deem that make a superficial change and even play to the gallery go against the principle of public order and good custom in securities market.The innovativeness of this article firstly embodied in the application of analysis method which combined the knowledge from social psychology and that from jurisprudence and economics with regard to rename action of listed companies;Secondly, this article also studied the present situation and reasons of rename action of listed companies combined with the analysis of typical cases;Finally, according to the study aforementioned, respectively from three levels: listed company, regulator and securities market, this article made a summary about the existing problems of rename action and provided some corresponding solutions to solve them.