Study On The Compulsory Delisting System Of Listed Companies In China

After over 20 years of development,China has formed legal system of compulsory delisting which is composed of laws,regulations and normative documents with the Securities law as the core,the Implementation Measures for Suspending and Terminating the Listing of Loss Listed Companies(Revised)as the guidance and the Listing Rules of Stock Exchanges(hereinafter referred to as the Listing Rules)issued by Shanghai and Shenzhen stock exchanges as the specific rules.The implementation of the compulsory delisting system of listed companies is to eliminate the listed companies that no longer meet the listing standards,so as to optimize the resource allocation of the securities market to realize the vigorous development of the capital market.However,listed companies use various means of financial violations and information disclosure violations to avoid the rules of forced delisting in practice just for maintaining listing status.The rigid and unrequited situation seriously destroys the order of the securities market and infringes the rights and interests of the majority of investors,which makes the forced delisting system not effective and the resources of the securities market cannot be reasonably distributed.This paper mainly focuses on the standards and procedures of the compulsory delisting system and the protection of the rights and interests of small and medium-sized shareholders,and analyzes the problems existing in the standards and procedures of the compulsory delisting system of listed companies in China,as well as the protection of the rights and interests of small and medium-sized shareholders in combination with practical delisting cases and raises the improvement suggestions after sorting out the rules related to the content of the compulsory delisting system of listed companies.Through case analysis,it is found that China's compulsory delisting standards are easy to evade in terms of financial indicators and low in terms of dynamic quantitative indicators that reflect the operating conditions of listed companies,and generally unclear in terms of non quantitative indicators;and because the compulsory delisting procedures are cumbersome and long,the listed companies frequently violate laws and regulations in the compulsory delisting procedures;in the aspect of the protection of minority shareholders' rights and interests by compulsory delisting,the problems of minority shareholders' rights and interests being infringed repeatedly and their rights protection channels being restricted are more prominent.In view of the above problems in the process of compulsory delisting and the requirements of the new Securities Law for the reform of the compulsory delisting system,it puts forward the following suggestions for the future exchange to modify and formulate specific rules: widening the quantity index and refining and increasing the non-quantity evaluation standard at the same time,simplifying the compulsory delisting procedure and perfecting the review procedure,meanwhile enriching the contents of the advance payment and stock-to-trading system,strengthening the protection of the minority shareholders in order to make the compulsory delisting system more smooth in implementation and giving full play to the role of optimizing the allocation of resources in the securities market.