Research On The Legal Issues Of Forced Delisting Of Listed Companies In China

The longevity vaccine incident that broke out in July 2018 triggered concerns about vaccine safety issues and concerns about the handling of responsible entities.Premier Li Keqiang specifically mentioned in the 2019 government work report that “enhance food and drug safety supervision and strict investigation.Changchun Changsheng Company and other problem vaccine cases." After the incident,in addition to the decision of the relevant state departments to make up to 9.1 billion yuan in fines and penalties for the responsible party,the China Securities Regulatory Commission issued the " Decision on Amending the Opinions on Reforming and Strictly Implementing the Delisting System of Listed Companies " ",including major illegal activities involving national security,public health and safety,etc.,into the situation of forced delisting.The mandatory delisting system of listed companies is the “export” of the stock market,which corresponds to the “entry” of the stock market – the stock issuance registration system.The two constitute the two core systems in the securities market.The mandatory delisting of listed companies as the relevant subject exit system in the securities market plays an important role in regulating the allocation of resources in the securities market,optimizing the composition of market entities,and reducing the risk of market systems.Compared with developed countries,a system of forced delisting of localization and systemization has been established,and it has been mature and applied for many years.However,there are still many problems in the construction and practical application of the mandatory delisting system in China.This paper is divided into four chapters to study the law of mandatory delisting of listed companies in China.The article first discusses the theoretical basis of establishing a mandatory delisting system from three aspects: public interest financial regulatory demand and the theory of financial regulatory demand,contract theory and market trading theory.And by briefly describing the development process of China's compulsory delisting system construction,the development of China's delisting system is divided into four main stages: establishment,formation,development and rapid improvement.Secondly,through China's analysis of the application data in the compulsory delisting system in China,and three typical cases of forced delisting due to major illegal acts,the main problems in the existing compulsory delisting system in China are obtained.Institutional powers and responsibilities are unclear.Second,the delisting standards are not practical.Third,the delisting process is cumbersome.Fourth,the delisting path is single.Fifth,the protection mechanism for small and medium-sized investors is lacking.Therefore,in order to improve China's compulsory delisting system,the article has a relatively perfect compulsory delisting system for the United States and Japan,from five aspects: the main body of supervision,delisting standards,delisting procedures,delisting routes and investor protection.Finally,suggestions for perfecting the mandatory delisting system of listed companies in China: First,reduce the value judgment behavior of the CSRC in the securities market,try to give full play to the part of the public supervision function of the stock exchange,and be given by the contract.Self-discipline management rights;Second,formulate quantitative standards that reflect corporate governance capabilities,corporate profitability,and company growth,supplement and improve non-quantitative standards based on market behaviors and social realities;and third,specific delisting procedures In the link,we should carry out key analysis from the background of setting up,the actual implementation effect and the cohesiveness before and after the link,reduce some links and add some procedures.Fourth,gradually establish and improve multi-level capital markets in China,and in each capital market.Establish an orderly transfer channel and broaden financing channels.Fifth,combine economic theory with China's actual situation,analyze the economic behavior of small and medium investors,and establish a targeted and effective legal mechanism for preventive and ex post remediation.