Delisting Mechanism Of China's Listed Companies

The stock market was born in the market economy,and its main purpose is to promote economic development.Under the price mechanism,the securities market has many functions like resource allocation,investment and financing,definition of property rights and so on.But these functions of play depend on the healthy operation of market.As the economy reform's further product,the securities market has been set up formally from 1991,already had history of 20 years.Because of historic reasons,China's securities market is the result of the system innovation.So,the securities market could not make a good fitness of the system and market development.The delisting mechanism is born 10 years later than the securities market,its expression in the market have little effect.Because of listed company's quality uneven,disruption of market order,investor's interests are violated,the function of securities market is not available.These problems cause scholars discuss Chinese delisting mechanism,after seeking western developed capital markets experience,they think Chinese delisting mechanism is mainly criticized in delisting criteria is too single and securities market level is not perfect.After study of the development of Chinese stock market,market performance and related policy,scientific analysis of large number of stocks of statistical figures,this paper attempts to find out the reason of delisting mechanism operation.Different from the past simple contrast of China and foreign counties,theoretical analysis of the delisting mechanism of significance and operation mechanism,the paper makes the research center located in China's market.We know that the"closed" system is the result of so many garbage stocks existing in Chinese stock market,serious phenomenon of malicious asst recombines,medium and small investors' interests are violated.However,only focus on the visible policy,seems to attempt an ineffective solution.The purpose of China's securities market initially is to provide services for state-owned enterprise.So the policy of securities market is under the impact of planned economy,the market economy is not perfect,it is the root reason of the lack of delisting system.To improve Chinese delisting mechanism,we should solve the root cause of problem.Chinese securities market is still not reaching level of full circulation shares of the mature capital market,and can not correctly reflect the real value of companies.Blind copy of foreign mechanism only could lead once again the market confusion.So,the principle of delisting mechanism reform should be the style like step by step,suitable for national conditions.On the microscopic level,diversified delisting standards,strengthen the restoration of listed enterprises inspected,backdoor listing standards need to be improved,the stock exchange company should strictly control behavior of asset reorganization of the*ST companies.And these measures should be implemented by the market's regulators.As investor and investee of the stock market,individuals and enterprises will also engage in introspection.Investors should strengthen their awareness of risk,and listed companies should improve corporate governance,to prevent financial fraud and so on.