| The Third Plenary Session of the Eighteenth Central Committee of the Communist Party of China approved the “Decision on Major Issues Concerning Comprehensively Deepening Reforms”. In 2014, the State Council issued the “Opinions on Further Promoting the Healthy Development of the Capital Market”, China kicked off a new round of capital market reform unfolds. The New Securities Act is around the corner, China's capital market is about to usher in a new tide of change, its development is stepping into a new level.The Chinese halt and resumption system, since the birth, plays a positive role in stabilizing prices, maintaining transaction order and protecting the investor rights and interests. Even though a lot of reforms have been carried out on the halt and resumption system, such as eliminated the routine halt and shortened its duration, and gave more room to the listed companies to make decisions. But there are still many problems in practice. It is an undeniable fact that Chinese listed companies' halt and resumption system on the stock exchange market has many malpractices, which needs to be addressed as soon as possible so as to cater to the trend of reform and promote the capital market development.Shanghai Stock Exchange listed company Yuancheng Gold Co. Ltd. conducted a major asset restructuring in 2014 and came to a halt for up to five months, and then followed with a suddenly resumption of trading. This exposes problems like arbitrary halt and resumption, less-stringent information disclosure, ignoring of the small-medium investors' demands. This paper introduces the connotation and current situation of the halt and resumption system, mainly analyzes the halt and resumption system during the major asset restructuring. The author takes the Yuancheng Gold Co. Ltd. and other typical cases as examples to illustrate the problems existing in the system and the hidden system deficiency. This paper tries to give some reforming and perfecting suggestions in response to these problems and defects.Except introduction,This paper consists of four parts.Part one introduces the major asset restructuring of the Yuancheng Gold Co. Ltd. and tries to expose some problems in it. The analysis shows us the problems of arbitrary information disclosure, ignoring of the small-medium investors' demands, and the regulator's dereliction of duty.Part two introduces the connotation, classification, the purpose of the halt and resumption system, after a further discussion on reasons, this part presents in particular the halt and resumption system in the major asset restructuring.Part three points out the problems in the practice of this system among Chinese listed companies through analyzing the case of the Yuancheng Gold Co. Ltd., which leads to the conclusion: there exist problems like insufficient supervision, regulation abuse, the lack of constraint resumption system and unsatisfied minority shareholders' demands.Part four echoes the third part and offers some practical suggestions: improving the security supervision, enhancing both the self-regulation and social supervision,perfecting the information disclosure system and integrity system,optimizing the halt and resumption system and refining the benefit protection mechanism for the medium and small investors. |
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