Research On The Protection Of The Interests Of Small And Medium Investors In The Forced Delisting

The newly revised Securities Law was officially implemented on March 1,2020.The new law provides for the "Investor Protection" chapter.In addition to the rights protection provisions in the old law,the newly added Chinese-style "group litigation"provisions are notable.In a real sense,a new era of "protection of small and medium investors" has begun.At present,China's capital market is developing in the direction of health,maturity,and prosperity,but at the same time,many problems have been exposed,and the rights and interests of small and medium investors are increasingly being eroded.At present,the number of listed companies in the A-share market has reached more than 3,700,and thousands of listed companies are mixed.The stock price of Guizhou Moutai,which is called "hard currency",has soared to more than 1,100 yuan,and Zhonghong shares,which are called "fair stocks",were fixed at 0.22 yuan when they delisted.Facing the A-share market,which is full of "junk stocks" like Zhonghong shares,it is imperative to strictly implement the delisting system.Perfecting the delisting system is not only a requirement to promote the positive development of the securities market but also an essential requirement to protect investors,especially small and medium investors.At present,as many as 24 delisting situations are stipulated in China's listing and trading rules,each of which is to encourage listed companies to operate legally,compliantly and reasonably.Following the natural rule of "survival of the fittest" in the capital market,and adherence to the normalization,standardization and rule of law of delisting will be the direction of future delisting system reform.Strict listing audits,delisting supervision in accordance with the law,forming a benign operation rule of"progress and retreat".The delisting of listed companies on the surface appears to be a"delisting" ceremony.The essence behind them is the performance of tens of thousands of small and medium-sized investors.Although delisting directly damages the interests of small and medium investors,the delisting mechanism is not the root cause of the damage to the interests of small and medium investors.The root cause is the negative effects of the internal operation mechanism of listed companies after the external delisting mechanism is triggered.This article takes Zhonghong's delisting event as a starting point for research,analyzes China's delisting system,and sorts out the supporting system for small and medium investors in China's current delisting system,and finds out the deficiencies and needs to be improved.Propose regulatory methods and means.The study adopted a case study method,taking Zhonghong as an example to study and analyze China's delisting mechanism and the status of protection of small and medium investors.Through the literature research method,sort out the relevant laws,regulations and documents,and peek into the research object from the top-level design of the system.List the delisting status,litigation and post-relief issues of other delisting companies through statistical analysis,and make relevant inferences horizontally.This article is divided into three parts,starting with the case of Zhonghong to uncover the veil of the delisting system in China's securities market,and explaining the current China's small and medium-sized investment through the problems exposed in the delisting,the impact on small and medium investors and the regulatory penalties of the regulatory authorities The protection status of the author.Secondly,it positively reveals the current problems of protecting the rights and interests of small and medium investors in China's delisting system,from the legislative level to the pre-procedures,loss identification and problems with the insurance agencies;from the regulatory level,the regulatory agencies' information disclosure and functions The shortcomings of exercise of power;from the judicial relief system,the representative litigation,civil execution issues and shortcomings in the disciplinary mechanism are discussed in many aspects.Finally,the problem-oriented regulatory measures are proposed to solve the problems of pre-procedure,prepayment and group litigation from the legislative level,the financial court and the execution obstruction from the judicial level,and the supervision of the securities regulatory department and the exchange from the regulatory level.