Study On Delisting Issues Of Chinese Listed Corporation In The New Era

To purify the market, the withdrawing mechanism is established. However,the existence of companies of poor quality in Chinese stock market makes thismechanism almost useless. In June28,2012, the Shanghai and Shenzhen StockExchange released the withdrawing system aiming at companies listed on the mainboard. The new system, comparing to the previous one, has a quite big breakthrough,and gradually becoming synchronize with the international standards. Whether thesenew policies can promote the formation of a virtuous cycle in China’s stock market is ahot topic worthy of study.This paper treats the topic above as a study basis, analyses the contemporarysituation of withdrawing mechanism and issues will be facing in this new era in China’sstock market. By researching to the mature markets abroad, advanced experiences andmethod is found and learned. It is believed that it is because of the close connectionbetween withdrawing issue, listing and management of companies, andresource distribution of capital market, improvement and effective implementation ofwithdrawing mechanism are of great importance for improving the overall quality ofChina’s stock market.This paper is divided into five chapters. The first chapter is an introduction,describing the background, the significance of the topic, research status, and purposeand research methods. The second chapter is an overview of listed companieswithdrawing system, introducing develop situation of withdrawing mechanism in Chinaand making a cooperation with withdrawing mechanism in abroad main markets.Chapter three analyzes the problems that China’s listed companies facing in the new erain withdrawing. The market environment for withdrawing, the effect of withdrawing on the company itself and also on the shareholders’ equity are analyzed and do some casestudy on the influence of it on the two withdrawing companied*ST Yan Huang and*ST Chuang Zhi. The fourth chapter is to give some suggestions on improving andsolving the withdrawing problem of China’s listed companies in this stage. Fifth chapteris the conclusion and limitations of this article.