Study On The Defects And Countermeasures Of The Delisting System Of The Main Board Market In China

The establishment of a country's capital market is an inevitable trend of economic development, and it is the inevitable outcome of market economy. The capital market plays an important role in optimizing the allocation of resources, improving the efficiency of resource utilization, promoting the development and reform of social economy and improving the market economy. The listed corporation is one of the most important participants in the capital market, whose quality determines the healthy development of the capital market. As a basic system of the capital market, delisting system plays an important role just like a "purifier". The companies whose qualifications cannot be reached listing requirements and the companies who have serious fraud to deceive investors will be excluded. The mutual operation and coordination between the listing system and the delisting system is the key to maintain the excellent development environment, to promote the healthy development of the securities industry in China. It has been for more than 20 years since the establishment of the delisting system, and it has experienced many changes and supplements. As the representative of the mature market, the New York Stock Exchange has established a perfect management system of delisting system with a hundred years of history. According to statistics, from 1996 to 2015, more than 3400 companies delisted from NYSE, accounted for 7% of the total. During the same period, only 100 companies were delisted from China's main board market, which was accounted for less than 1%. The effect of the implementation of the delisting system is far from the United States. The delisting system did not play the function of survival of the fittest in the development of the market economy in our country. As the delisting system exists in name only, a large number of bad companies which have high risk are flooding the market. The phenomenon greatly reduces the efficiency of capital market and harm the interests of investors. Therefore, the reform of the delisting system is imminent.As the building of delisting system coming to the further improve stage since 2012, the reform and revision of the delisting system gradually get refined. Many criteria is gradually added to the delisting criteria, such as audit opinion, net assets, operating income. October 2014 Shanghai and Shenzhen Stock Exchange issued the stock listing rules (2014 Revision), proposed to improve the initiative to withdraw from the market, added the fraudulent issuance and credit disclosure standards. The new delisting system further strengthens the regulatory efforts of the listing Corporation of illegal phenomenon, improve the active delisting system in our country, further refines the delisting standard, increases the feasibility of the delisting system. The reform and improvement of the delisting system has promoted the implementation of the registration system, which laid the foundation for the transformation of the approval system to the registration system.After the release of the new delisting system regulations, what are the similarities and differences of our main market delisting system compared to the United States and other developed countries'; how to evaluate the effect of China's delisting system, if it really played a role in purifying the capital market;, what are the defects of China's delisting system, how to further improve; for listed company, delisting system whether to play specific role and influence the behavior of listed companies. All of the above questions are tried to be answered in this article.This paper focuses on the analysis of the shortcomings and deficiencies of China's main board market delisting system based on the new regulations of the delisting system in 2014, through the comparison of the differences between the two countries in the main board market delisting system. Through the comparison of different cases of China and the United States delisting, the paper analysis of the specific implementation of the lack of China's delisting system. At last, we put forward the corresponding policy suggestions on the further improvement and perfection of the delisting system of the main board market in our country.This article uses combination of the standard analysis method, the comparative analysis method and the case analysis method to analyze the problem of the main board market in our country. Standard analysis method is mainly to standardize the delisting system, to solve the problem "what kind of delisting system is a mature delisting system". It takes the implementation function of the delisting system as the main goal, to deduce the link between things, so as to evaluate the "good" and "bad" of a country's delisting system. Comparative analysis method is mainly based on the current situation of China's delisting system, to compare with the United States mature delisting system and China's delisting system, and to summarizes the similarities and differences and finds out the shortcomings of China's delisting system from two aspects of qualitative and quantitative analysis. Case analysis method is to sum up the existing problems in the from the process of delisting from classic cases, in order to further improve the relevant recommendations of the delisting system.This section selects the delisting cases of "*ST Erzhong" from the Shanghai Stock Exchange and "Giant Interactive Group" from the NYSE to make comparative analysis. Here are some reasons why to select the cases:(1) Two cases are both Privatization initiative delisting, so the type of delisting is comparable. (2) "*ST Erzhong" is the first active delisted company after the new delisting system, while it is the first state-owned enterprise active delisted case in China. And the "Giant Interactive Group" is a famous Chinese company listed in NYSE, so the two cases have certain representative; (3) "The delisting opinions" put forward to improve the active delisting system. At the same time, the proportion of active delisting companies is the symbol of whether a country's capital market delisting is mature or not. Therefore, taking the active delisting companies as our cases is representative.The paper is divided into four parts, as follows:The first part is the introduction. This part expounds the background, purpose and significance of the research, and clarifies the research ideas, structure and methods of the study, and summarizes the literature of domestic and foreign scholars.The second part is the comparison of the main borad delisting system of China and America. To briefly describe the basic concept of the delisting system, summarize the similarities and differences between the delisting system of main board market between China and America, from the delisting criteria, delisting procedures, implementation effect. Analyzing the defects and shortcomings of the delisting system in China.The third part is the comparative analysis of Chinese and American delisting cases. This part selects "*ST Erzhong" active delisting and privatization of "Giant Interactive Group" as an example, to make a brief introduction of their delisting processes, to analysis of the reasons for the initiative to withdraw from the market. Analysis of the defects of the delisting system in our country from the comparative analysis of the cases.The fourth part is the summary and countermeasures. Based on the analysis of the first three parts, this paper draws the conclusion and puts forward the corresponding countermeasures and suggestions to the defects of China's delisting system. Finally the paper puts forward the shortcomings of the article and the direction of further research and development.