Research On The System Of Compulsory Delisting Of Listed Companies For Harmful Public Safety

After measures for the mandatory implementation of major illegal acts of listed company in Shanghai stock exchange(hereinafter referred to as the "measures")issued on November 16,2018,Changsheng biology is the first listed company of compulsory delisting for endangering public security.And,apparently,it is due to the illegal production of vaccines and endangering public security,resulting in social health and safety scares.The measures clearly stipulate that major illegal acts involving national security,public security,ecological security,production safety and public health and safety will face mandatory delisting once they are touched.In the current delisting system design of our country,there are active delisting and passive delisting.The compulsory delisting system belongs to passive delisting system.The compulsory delisting system refers to the system in which listed companies take severe punishment measures when there are illegal acts or serious risks in their operation and management,so as to change their status from listed companies to non-listed companies.Delisting because of endangering public safety belongs to the category of compulsory delisting system.It is a further refinement of compulsory delisting system.Fake vaccines produced by long-lived organisms endanger social and public safety.They belong to illegal and irregular situations in compulsory delisting system.Therefore,compulsory delisting measures are adopted under the current system.Therefore,the behavioral characteristics of endangering public safety are clearly defined and the end is achieved.A good system of compulsory delisting is of great help.But in the face of Changsheng biological company delisting irreparable circumstances,the stock price of it rises continuously board,and the average daily volume breakthrough levels in recent years.This kind of "strange phenomenon" has a lot to do with Changsheng biology's unique market environment and the monopoly advantage,but it brings heavy blow to the society and the small and medium-sized investors.Changsheng biology is forced to delist,which highlights the country's "zero tolerance" attitude to major illegal listed companies.In the situation of severely cracking down on the major illegal behaviors of listed companies,it is not only necessary to identify the behaviors endangering public security by relying on social public opinion and social influence,but also necessary to clearly define the standards of the behaviors endangering public security and the differences between them and other types of forced delisting.Compared with other reasons for delisting,the acts endangering public security are heteropoly,legal,indefinite and punitive.Compared with other types of forced delisting,the acts endangering public security are more thorough in denying the status of listed companies,and more prudent and strict in delisting procedures.But through Changsheng biology event also reflects the current legislative and regulatory loopholes in our stock market.There are some reasons,such as unclear legal regulations,backward legislative consciousness,lax regulatory measures,and insufficient enforcement.In terms of Changsheng biology,being delisted does not mean it cannot be relisted later.At present,domestic legislation only explicitly stipulates that listed companies due to fraudulent issuance cannot relist after compulsory delisting.However,the behavior of Changsheng biology endangering social public security is more serious,and there will appear contradictions in the system.However,in theory,the possibility of relisting of Changsheng biology cannot be ruled out.In order to further improve the compulsory delisting system of listed companies for endangering public security in China,We should start from the following aspects.Firstly,the behavior boundary of endangering public security should be clearly defined in the first place.Secondly,we can refer to the treatment of cases of forced delisting of major illegal acts in the past,and set up a special compensation fund system for public security to protect the legitimate rights and interests of small and medium-sized investors.Thirdly,the delisting insurance system should be established to solve investors' concerns and ensure the sound development of the securities market.Repeat over and over in detail,construct litigation model judgment system,so as to reduce the burden of litigation investors and the pressure on courts to handle cases,and give play to the effect of litigation model.Finally,we should improve the functions of stock exchanges and the information disclosure system so as to give full play to the vitality of the stock market.