| Trading suspension,as a general basic system in the capital market,has been abused by listed companies in recent years and even used as a tool to avoid falling stock prices.As a result,the transaction liquidity of investors and the trading order of capital market are harmful to a certain extent,and directly affect the internationalization process of A shares in China.The abuse of suspension in Chinese A-share market is characterized by a large proportion of suspension,frequent suspension and failure to resume trading in time.The reason lies in the imperfection of the suspension system: lack of punishment mechanism and supervision mechanism of information disclosure during suspension.Due to the unknown influence and risk on investors and markets,the abuse of suspension has attracted the attention of the society in recent years.But at present,the risk of corporate abuse suspension is mostly news reports and social comments,while systematic in-depth research is still a blank stage.Therefore,this paper is based on the theory of information asymmetry and irrational expectation,and based on the framework of the abuse and suspension of trading in the Ashare market,and based on the Information Asymmetry theory and the theory of irrational expectation.This paper focuses the phenomenon of abuse and suspension of trading in listed companies from the point of view of risk,and takes Letv as a case to discuss the motivation,market effect and multi-angle risk result of the long-term suspension of trading deeply.The results show that the abuse of suspension can only temporarily avoid the decline of stock price.If the company does not really complete the work during the suspension period,it will increase the market selling pressure and increase the risk of future stock price fluctuation after the suspension.In this way,the suspension not only failed to resolve the risk of individual stocks,but also gathered the risk of the stock price plummeting to the relevant investors and capital markets,making the market morevulnerable.In short,in order to avoid falling and abuse the suspension system,overall,not to resolve the corresponding risks,but to gather or even increase the relevant risks after the suspension of concentrated release.Therefore,it also puts forward several suggestions which can be considered in the use of suspension system: the first is to reduce the frequency of suspension by reducing the allowed reasons for suspension;second,by establishing clear conditions for the resumption of compulsory trading so as to compress the suspension period;the third is to strengthen information disclosure by improving the effectiveness of information disclosure,strengthening the supervision of information disclosure,and improving the construction of credit information system.From the perspective of risk,this paper tentatively makes a research on the intrinsic motivation and risks of the abuse of trading suspension,which provides the research supporting for the listed companies to make correct use of the suspension system and the perfection of the suspension system.At the same time,it also has value for shareholders,companies,financial institutions and capital market to reveal the risk result of suspension from many angles.It is important for enriching the theoretical research of suspension and perfecting the relevant system. |
