A Case Study On The Reduction Of HQ Chain Large Shareholders

In April 29,2005,in order to solve some defects in Chinese initial capital market,the China Securities Regulatory Commission started non-tradable shares reform.With the completion of the reform of the equity division,the circulation rights of non-tradable shares have been obtained,which marks the beginning of China's capital market entering the whole circulation era.More and more non-tradable shares have been lifted,and major shareholders have begun to reduce their holdings of listed companies.In recent years,large shareholders have greatly reduced their holdings to the stock market,which has caused great impact,and even damaged the smooth and healthy development of the whole market.In early 2017,the China Securities Regulatory Commission issued a number of documents on regulating the reduction of holding behavior in order to limit the reduction of major shareholders.This paper first summarizes existing literature,on the basis of previous results from scholars at home and abroad,then takes the reduction of major shareholders of HQ Chain as the research object,to explore the influence of the state-owned and private capital on the financial effect of listed companies through the way of reducing their holdings.Based on the existing research and the actual situation of the case,this paper makes an in-depth analysis of the real causes of the reduction of major shareholders.Then based on the financial statements,comparing financial data before and after the major shareholders holdings,the influence of large shareholders on minority shareholders' equity and corporate financial effect is obtained.Using Event Study Methods to study the degree of market reaction to the reduction,at the same time,according to the above research,we analyze the risks brought by the reduction of large shareholders from multiple perspectives.In the end,this paper summarizes the case summary of major shareholders of HQ Chain and gives some relevant enlightenment.This paper provides a new way for major shareholders to reduce their holdings.It is believed that the controlling shareholder's reduction is not always to take advantage of the listed company,or it may be the combination of the ownership structure of the company to consider the company's future.By reducing the introduction of strong investors and opening up larger markets for companies,at the same time,it optimizes the ownership structure and improves the value of the company,which is the support behavior of the major shareholders.Through many aspects of analysis,the research results show that the reduction of the major shareholders of HQ Chain will bring positive effects to the listed companies while the initial reduction will have negative effect to some extent,but the overall effect is still positive.