Chen Xin Technology's Major Shareholder Reduction Case Study

Since the listing of major shareholders has been a major problem that has plagued the stock market's good operation since the listing of the banned shares,the substantial reduction of major shareholders has brought a huge impact on the capital market,which is in urgent need of regulation,which has seriously affected the stable development of the market.In order to better stabilize the capital market and protect the interests of small and medium-sized investors,the CSRC issued regulations restricting the reduction of major shareholders in January 2016 and May 2007,including the announcement of the Securities and Futures Commission [2017]9 in 2017.No.)is the revision and improvement of the(CSRC Announcement [2016] No.1)issued in 2016.This shows that the CSRC has been paying attention to the impact of major shareholder reductions on the stock market and is constantly regulating the reduction of major shareholders.This paper chooses Chenxin Technology as a case to study the behavior of major shareholder reduction.Firstly,it analyzes the financial status,operation status and external market environment of the major shareholders of Chenxin Technology before and after the reduction.Secondly,it analyzes the process of reduction and holding of the major shareholders of Chenxin Technology,and analyzes and finds that the majority shareholder of Chenxin Technology has reduced its holdings.The motivations are divided into external motivations and internal motivations.External motivations are caused by insufficient improvement of relevant regulatory systems for major shareholder reductions and major shareholders' risk of stock price changes.Internal motivations are due to the sluggish performance of Chenxin Technology and major shareholders.Empty behavior;Again,from the earnings management,market reaction and minority shareholders,the economic consequences of the reduction of Chenxin Technology's major shareholders are analyzed multiple times.Through the analysis and research of this case,it is concluded that the reduction of the majority shareholder of Chenxin Technology has seriously infringed the interests of small and medium shareholders.The small and medium shareholders should raise the cautious investment in the ability to identify the major shareholders,and the CSRC should strengthen supervision to regulate this.Shareholders' reduction of their holdings and the need to increase penalties for reducing their holdings in order to better protect small and medium investors.