Study On Compulsory Delisting Of Xintai Electric Under The Background Of The New Delisting System

Delisting system,especially the compulsory delisting system is an important part of the capital market supervision system,but China has long been lack of due attention to the system.In October 2014,the China Securities Regulatory Commission(CSRC)issued "Some opinions on the reform and perfection of the delisting system of Listed Companies ",subsequently,the Shanghai and Shenzhen Exchanges to start the delisting system reform and the introduction of the new system follow the unified deployment of the CSRC,which formed the 2014 version of the new delisting system.Compulsory delisting is that regulatory agency makes the suspension or termination of the listing decision for the listed company which identified as major violations or no longer meets the conditions for listing based on regulatory power and the delisting system.The new system improves the compulsory delisting system,and requires listed companies which have major issues of fraudulent issuance or major violations of information disclosure to be forced delisting.Xintai Electric is the first company which was forced to withdraw from the market and cannot be listed again for fraudulent issuance and major violations of information disclosure.Regulatory authorities’ punishment on Xintai Electric is the most severe case in the history of A shares.This paper research the Xintai Electric compulsory delisting cases under the background of the new compulsory delisting system,mainly by carrying out a detailed analysis which focuses on compulsory delisting system,Xintai Electric’s operating status,investor protection and the supervision of intermediaries to research the influence of Compulsory delisting on financing side,investors,and intermediaries,and then get some conclusion to improve the compulsory delisting system.