| China is in a critical period of the reform from stock issuance approval system to registration system.The IPO registration system is conducive to improving the quality of listed companies and promoting the stock market to run in the direction of value investment.The delisting mechanism is as important to the healthy development of capital market as the stock issuance mechanism.Although the delisting mechanism of China’s capital market has undergone many reforms since its initial establishment in 2001,it still has a wide gap compared with mature foreign markets,and the delisting criteria,procedures and related supporting systems still need to be further improved.At present,the "zombie companies" are flooding in China’s securities market,and the delisting rate is low."zombie companies " refers to the enterprise that loses the ability of self-development and must rely on external factors to survive,like government subsidies."zombie enterprises" try their best to keep their listing status and occupy market resources for a long time,which makes the function of optimizing the allocation of resources in the market unable to give full play,and seriously hinders the healthy development of capital market.Therefore,how to improve the delisting mechanism of listed companies to improve the status quo of "zombie enterprises" is a realistic problem that needs to be urgently solved in China’s capital market.Throughout the existing research on delisting mechanism in China,most of them are theoretical research on the reasons and impacts of the delisting of listed companies and the comparison of delisting mechanism at home and abroad.There are few studies on typical cases.DADONGHAI A,which has been successfully protect its shell for three times,is a typical case of shell protection in China’s securities market and has great research value.Through the analysis of this representative case,this paper analyzes the problems existing in the delisting mechanism of China’s current listed companies,and then puts forward some suggestions to improve them,hoping to make some contributions to the healthy development of China’s capital market.This paper combines literature research,case analysis and comparative analysis.Firstly,on the basis of reading a large number of related literatures,this paper combs the research on the reasons for delisting of listed companies,the impact of delisting and functions of delisting mechanism of listed companies,and the comparison of delisting mechanisms at home and abroad.Then the author introduces the meaning and composition of the delisting mechanism,the significance of perfecting the delisting mechanism of listed companies in China,the evolution process of the delisting system in China and the theoretical basis of delisting mechanism.Due to the strict implementation of the current stock issuance approval system,it is difficult for some enterprises to go public.In order to obtain the status of listed companies as soon as possible,they often choose to purchase shell resources to achieve the purpose of being listed in another way.This behavior has triggered speculation on shell resources in the market,and a large number of capital influx into junk stocks facing delisting risk,making the market price of the junk stock far greater than the intrinsic value,and the speculative atmosphere is strong.Perfecting the current delisting mechanism will help to crack down on the irrational speculation behavior in the capital market and lead the market to follow the value investment principle.At the same time,improving the delisting mechanism can eliminate the poor-quality listed companies that have lost the ability to develop,and provide market resources and opportunities to high-quality enterprises.In addition,small and medium-sized investors are one of the main participants in the securities market,with a large number of people,weak risk tolerance and narrow access to information.Compared with institutional participants and controlling shareholders,small and medium-sized investors can not directly participate in the company’s business decision-making because of the decentralization of their equity,which is often the biggest victim of corporate decision-making errors.Perfecting delisting mechanism is conducive to protecting the legitimate rights and interests of small and medium-sized investors.DADONGHAI A has been listed for 22 years and has suffered losses for 19 years after deducting non-recurring gains and losses.It still stands in the A-share market with a market value of 3 billion.This representative case reflects the shortcomings of delisting mechanism of listed companies in China.Mainly reflected in the setting of the delisting criteria,the quantitative delisting criteria is not comprehensive,and the non-quantitative delisting criteria lack of consideration of the public interests;in the provisions of delisting procedure,the continuous loss to delisting takes a long time,and the rectification period lacks supervision;local governments has administrative intervention in the delisting process of listed companies.At present,the information disclosure system of listed companies in China is not perfect,and the representative litigation system cannot effectively protect the interests of investors.In view of the above problems,based on the macro-environment of China’s capital market and drawing on the experience of foreign mature market delisting mechanism,this paper puts forward some suggestions on how to improve China’s delisting mechanism,including:(1)strengthening the control of the net profit after deduction,increasing dividends and total market value standards;(2)streamlining the delisting process,strengthening the supervision and inspection of the rectification period;(3)improving laws and regulations,and establishing an effectively of supervision and accountability mechanism to regulate the administrative power of local governments;(4)establishing a strict information disclosure system and a perfect civil compensation system to strengthen the protection of the interests of small and medium investors.It is hoped that these suggestions can provide reference for perfecting the current delisting mechanism in China and promote the healthy development of China’s capital market. |
PDF Full Text Request