Case Analysis Of Large Shareholders' Unlawful Reduction Of Holdings

China's capital market started late,and has been constantly groping forward in the reform.After the completion of the reform of non-tradable shares in China,the restricted shares held by major shareholders of listed companies have been lifted.For various reasons,some major shareholders need to put their shares into the capital market for trading in order to obtain high returns.Through the research,it is found that although the reduction behavior of major shareholders is beyond reproach,but as a closely watched company insider,his words and actions will have different degrees of influence on the securities market,and his reduction behavior will cause extra attention from the outside world.In 2016 and 2017,the China securities regulatory commission(CSRC)issued a number of legal documents in order to further regulate the reduction of stock holdings of listed companies.The publication of these documents is helpful to supervise and manage the reduction behavior of major shareholders in China,and to improve and perfect the supervision system of China's capital market.The research object of this case is quantong education.Through the study of some deficiencies exposed by the illegal reduction of quantong education's major shareholders in this case and the chain reaction caused before and after the reduction,the problems will be found and analyzed in a dot-and-branch manner,and reasonable Suggestions will be put forward for relevant problems.The paper is generally divided into four parts,as follows:First,introduction.This part mainly includes research background,research significance,literature review,research methods,article structure,innovation and shortcomings of this paper.Second,theoretical basis.This part mainly explains some related concepts involved in this paper,and expounds some current theoretical research related to the reduction of major shareholders.Third,case study.This part around the all-pass education major shareholders violation underweight,all-pass education mode of underweight was the key player in 2017 promulgated the new rules of the object,more targeted,and all-pass education major shareholders holdings of illegal behavior by the SFC issued can be in accordance with the relevant provisions of the highest fines,more representative.The analysis process is carried out from the aspects of causes,means,process,economic consequences and harm of reduction.The reasons for the reduction mainly involve the internal conditions of the over-concentration of major shareholders' equity,the low punishment for violations and the external conditions of the imperfect supervision system.Reduction means mainly involve bulk trading reduction and "bridge" reduction.The process of reduction mainly involves precise timing of reduction in the early stage,the use of "bridge" reduction in the middle stage,and the frequent reversal of stocks on the securities trading platform in the later stage.The consequences and harms of reduction mainly involve the economic interests of minority shareholders,the legitimate rights and interests of minority shareholders and the authority of Chinese laws.Fourth,reasonable Suggestions: from the perspective of listed companies,it is necessary to improve and optimize the unreasonable shareholding structure of listed companies,implement the independent director system of listed companies,and invite minority shareholders to participate in corporate governance;From the perspective of regulators,it is necessary to learn from and absorb the advanced and mature regulatory systems of other countries,increase the penalties for violations in China's capital market,and establish and improve the information disclosure system of listed companies.From the perspective of small and medium-sized investors,we should give full play to their subjective initiative,maintain a cautious attitude in the investment process,and effectively protect their legitimate rights and interests.