Comparative Analysis On The Delisting System Of Listed Companies In China And The United States

Since Shanghai and Shenzhen securities market were established,China's securities market has made the remarkable advancement and achieved what other countries gained in past hundreds of years.However,it also faces some problems.Listed company delisting system refers to the regulation of the entire process of stock delisting on listed companies by regulating activities and relationships of listed companies and related agencies.Apart from equipped with complete and efficient market listing standards,an effective market should also have more complete delisting system.The market operates effectively only when it continues to eliminate the unqualified listed companies and introduce new energetic ones,making the securities market stay in flux and add more vitality.Compared with American mature stock market system,Chinese securities market still has some weaknesses and the lack of market vitality is the most obvious problem.Tracing the reason to its source,we have found that our country's securities market fails to provide an open and inclusive market environment.It will promote the perfection of our delisting system positively when we combine the full analysis of the current market dilemma in China with the relevant experience of American securities market.The cause of the phenomenon that good and bad listed companies are intermingled in our market is imperfection of the securities market access and exit mechanism.Though China has cancelled the quota issuing system and adopted the approval system which is less administrative color,administrative control in the issuing process is still very serious.Besides,the registration system,well adopted in developed countries,is not put into use in China,leading to the difficulty in going public for many companies.Due to the high cost of going public,most companies are unwilling to voluntarily delist when at loss.On the contrary,they often think about how to restructure to sell,thus resulting in a large number of deficit shares hoarding in the securities market for a long time.This impacts the free inflow and outflow of Chinese securities market,leading to the low quality of the market.Taking a look at the concrete practice of our listed company delisting system,the effect of implementation is not satisfied and quite a number of low-quality companies are reluctant to delist.It will have a practical significance on the long-term development of the securities market and economic growth in China when we think how to explain this unique phenomenon and enhance the maneuverability of the listed company delisting system,forming the benign circulation of the survival of the fittest.