An Analysis Of The Causes,Methods And Economic Consequences Of Major Shareholder Reduction

China's securities market was established in the early 1990 s.Because of the transition of the economic system,a special era product was created.The disadvantages that it created were increasingly serious with the development of the social economy.Under such an economic background,the five branches of the China Securities Regulatory Commission,the United Nations National Assets Supervision and Administration Commission,and others issued the “Notice on Issues Concerning Pilot Projects of Listed Companies' Share Split Reforms” on April 29,2005,and the split share structure reforms have been ongoing since 2008 until 2008.In the past year,China's stock market has basically entered the era of full circulation,and the issue of shareholder reductions was born.However,supporting laws and regulatory policies have not been followed in a timely manner.The reduction of major shareholders has inevitably resulted in some problems and economic consequences.Based on this background,this paper makes a systematic study of the motivations,methods,and economic consequences of major shareholder reductions.From the perspective of listed companies and large shareholders,to study the motives and economic consequences of shareholder reductions,we can recognize that the importance of reductions to major shareholders includes wealth growth and the future development of the company;from the perspective of the healthy development of the capital market,Understanding the motivations,methods,and economic consequences of major shareholder reductions can improve relevant rules and regulations and better protect the interests of small and medium shareholders.Since its launch in 2012,the company has been very eye-catching,and has also attracted attention from its major shareholder Yao Wenbin.This article uses case study method and event analysis method to study the palm-sized technology shareholder Yao Wenbin in 2016.In addition,the four reductions in the year-and-a-half of 2017,after introducing the timing,background and detailed process of reducing their holdings,the motives for the reduction of holdings by major shareholders,the new and old reduction methods,and reductions in the secondary market The analysis of the impact of stock prices and the company's financial status,and from this analysis the need to regulate the reduction of major shareholders.The results of the study show that the motivations for the reduction of holdings by major shareholder of technology-based science and technology include the use of cash profits and the introduction of strategic investors to support the development of the company through the transfer of shares.At the same time,there are still problems of infringement of the interests of small and medium shareholders in the act of reducing holdings.In 2016,Yao Wenbin's stock price volatility was far greater than the industry average for a period of time before and after the reduction.As a result of the shareholding reduction event,the company's share price showed a smaller increase or greater decline,indicating that the major shareholder's shareholding reduction was In the short term,it will send negative and negative news to the market.In 2017,the reduction will give the market some positive feedback.This is not what the 2016 reduction will do.It shows that different reduction causes may bring different market reactions.At the end of the article,this article proposes policy recommendations for regulating the behavior of major shareholders to reduce holdings from both internal and external supervision of the company.