A Study On Involuntary Delisting

The forced delisting issue in China was first regulated in April 1998,by both Shanghai and Shenzhen Stock Exchange. In November 2014, tighter rules about forced delisting was issued. As is known to all, the forced delisting issue is gaining more and more attention in China. For a stock market, delisting is no less important than listing. Only when the delisting issue is properly solved can the quality of the corporation in the stock market be guaranteed, and also, the function of the stock market can be properly exerted. There are two types of delisting---voluntary delisting and forced delisting. Corporations delist voluntarily mainly out of privatization or merger purposes. But forced delisting often involves more complex problem. The reasons and economic consequences of forced delisting is a problem that worth careful considering.This thesis takes Nanjing Tanker Corp. case as an example. Nanjing Tanker Corp. was forced delisted because of its financial problem. Its delisting attracted many people’s attention because Nanjing Tanker Corp. is a subsidiary of a state-owned enterprise. Taking Nanjing Tanker Corp. as a representative, this thesis analysis several aspects of forced delisting, ranging from reasons to outcomes. Besides, problems reflected from Nanjing Tanker Corp. forced delisting cases were summarized with solutions proposed accordingly.