Study On The Compulsory Delisting Mechanism Under The Registration System Of The Star Market

The arrival of the Star Market era has not only brought opportunities of financing for many technology innovation enterprises,but also injected full impetus into the mechanism changes in China's capital market.In the practice of A-share market,the low efficiency and the difficulty of delisting due to the existence of the phenomenon of "speculation on shells" and "conserving shells" have always been a "Chinese-style delisting problem".The reform of the pilot registration system of the Star Market,adhering to the "early and pilot implementation" policy,based on the existing compulsory delisting mechanism of listed companies,has carried out a drastic reform to adapt to the registration system and the development of technology innovation enterprises.To a certain extent,this may ease the existing delisting problems in China.However,the new mechanism also has certain problems and challenges.This article considers the experience of the NASDAQ market and Hong Kong market's extraterritorial mechanism,and finally puts forward some suggestions for improving and guaranteeing the new rules of the compulsory delisting mechanism of the Star Market.The main body of this article is divided into five parts:The first chapter mainly introduces the background of the compulsory delisting mechanism of the Star Market.After determining the concept of compulsory delisting,the article combs the development path of the compulsory delisting mechanism of listed companies in China,combined with practical cases,and concluded that China's delisting rate is low and delisting execution is difficult.Solving the phenomenon of "speculation on shells" and "conserving shells" is the top priority in unblocking the delisting channels.Under the pilot registration system of the Star Market,China's compulsory delisting mechanism is facing an opportunity for innovation.This may help solving the "Chinese-style delisting problem" to some degree.The second chapter analyzes the implementation logic of the compulsory delisting mechanism of the Star Market.First of all,the background of the registration system has reduced the value of the shell company.In this way,the resistance to delisting has been reduced,the channels for delisting have been cleared,and the survival of the fittest can be realized under the idea of "widely entry and strictly exit".Secondly,as far as the main body of the enforcement of the compulsory delisting is concerned,it has returned to the self-regulatory supervision under "contract autonomy".The stock exchange has formulated detailed delisting rules through decentralized power to better implement the compulsory delisting of enterprises under the "market-based securities legal concept".Finally,the compulsory delisting mechanism has become more systematic and multidimensional in the setting of standards,and the arrangement of delisting process has become more efficient.In this way,not only the problems of "speculation on shells" and "conserving shells" have been solved to a certain extent,but in theory,inferior companies including shell companies can be cleared from the market in time.The third chapter is to explore and analyze the problems and challenges faced by the compulsory delisting mechanism of the Star Market.First of all,the setting of standards does not correspond to the listing standards and fails to fully cater to the development of different technology innovation enterprises.Secondly,the function of trading indicators hasn't been realized and some of them maybe is low.Thirdly,the judgment of "losing the ability to continue operations" is vague and subjective,which may be difficult to grasp in practice.Finally,there is a lack of supporting mechanisms for compulsory delisting,which will bring some resistance to hinder the implementation of compulsory delisting mechanism.One thing is that those enterprises which have been forced to delist lack followed-up perfect trading channels,another thing is that for the loss of their interests in those which have been forced to delist due to the major illegal behavior,the relevant remedies need to be improved.The fourth chapter turns attention to the two mature capital markets of the United States and Hong Kong.Through comparison of delisting situations and thinking and reference on the mechanism,the article tries to put forward some opinions on the improvement of the compulsory delisting mechanism of the Star Market.The delisting rate in the United States has always been very high.Taking the NASDAQ market as the key research object,its relevant mechanism arrangements in the setting of standards,trading channels after delisting and investor protection are all worthy of reference.The same mature and developed Hong Kong capital market,however,has a very low delisting rate.This article analyzes the reasons for this phenomenon in the mechanism perspective.From the negative side,it shows that the delisting indicators of "main business being hollow",need to be further explicit and objective,and at the same time,there must be some perfect followed-up trading channels.Meanwhile,the "00946.HK" case also provided some inspiration for this article's remedies on the investors' interests loss in those enterprises which have been forced to delist due to the major illegal behavior.Based on the above thinking and reference,adhering to the concepts of marketization and legalization on the Star Market,combined with the background of the pilot registration system of the Star Market,the fifth chapter puts forward solutions and suggestions for the problems and challenges faced by the existing compulsory delisting mechanism,focusing on the system and setting of the indicators,followed-up trading channels and remedies on the investors' interests loss,in the hope that the mechanism can be actually implemented and the normalization of China's delisting will be realized as soon as possible.