A Research On Stabilization-Oriented Share Repurchase System In China

As a means for listed companies to respond to abnormal fluctuations in the financial and securities market,the Stabilization-oriented share Repurchase system has multiple values and functions such as resisting malicious acquisitions in the capital market and stabilizing the financial market.It is a flexible capital operation tool.It is widely used in mature capital markets and has made very important contributions to ensuring the stable development of securities markets in various countries.Because the purpose of the Stabilization-oriented share Repurchase is to stabilize the stock price,many problems are likely to occur during the implementation of the share repurchase.Therefore,at the beginning of the system,all countries have strictly regulated the share repurchase for the purpose of protecting the market.For our country,the capital market is in a period of rapid growth,the financial regulatory system is not mature enough,and the legal regulation of share repurchase system needs to be strengthened.In view of the fact that the the Stabilization-oriented share Repurchase is prone to infringe on stakeholders and benefit conveying behavior,we should adhere to the principle of prosperity and elimination of disadvantages,and improve the system of Chinese Stabilization-oriented share Repurchase by learn comparing and drawing on relevant overseas legal regulation technology of outer plate repurchase to better play its value function.The introduction mainly explains the source of the author's question consciousness:When a listed company in China carry on the behavior of share repurchase,what procedures need to be followed? What stakeholders will be involved in actual operation?For these stakeholders,it is necessary to distinguish and regulate their characteristics.What is the standard of regulation? How should the stakeholders be relieved when their rights and interests are infringed? And how to distinguish between the Stabilization-oriented share Repurchase behavior and market manipulation behavior? As insiders,listed companies will inevitably involve in the field of insider trading when they repurchase their own shares;how to define whether a series of these actions in the process of repurchasing shares are legal repurchase measures or illegal benefits transfer?However,should there be a certain tolerance in legislation and under what circumstances need to be punished for these suspected illegal acts? How should these penalties be regulated? With these questions in mind,this article starts to think about the Stabilization-oriented share Repurchase.In general,China's Stabilization-oriented share Repurchase can be regulated from four perspectives: protection of creditors' interests,protection of vulnerable shareholders' rights,manipulation of markets,and insider trading.Among them,the protection of creditors' interests should focus on supervision of repurchase resolutions and debt repayment ability declaration system to regulate;the protection of shareholders' rights and interests should focus on restricting the source of repurchase funds,strict Stabilization-oriented share Repurchase trigger criteria,differentiating arrangements for different shareholders,and refining resolution rules;for market manipulation,we should start with the establishment of a safe harbor system in China and improving the civil compensation mechanism;for insider trading,by expanding the scope of regulated entities,strictly identifying insider information,and expanding the regulatory dimension of insider trading,diversified regulatory approaches to prevent the insider trading behavior in China's Stabilization-oriented share Repurchase.