Study On Forced Delisting Of Chinese Listed Companies

The establishment of the Shanghai and Shenzhen stock exchanges in 1990markedthebirthofChina’sstockmarket,withlistedcompanies,asanimportantpart of the securities market, its delisting has been a concern. For a healthysecurities market, exit is as important as entry. Only the unqualified listedcompaniescanbecleanedoutintimecantheoverallqualityoflistedcompaniesinthesecuritiesmarketbeguaranteed,thebasicfunctionofresourceallocationinthesecuritiesmarketberealized,andthesurvivalofthefittestplayarole.Ifthereare a large number of inferior companies in the securities market, the orderlyoperationofthemarketwillbeaffected,andthelegitimaterightsandinterestsofthemajorityofsmallandmedium-sizedinvestorswillnotbeguaranteed.Onthebasisofconsultingalargenumberofdomesticandforeignliteratures,thispaperselectsthecaseofforceddelistingofinkingmediaforacomprehensivestudy. Based on the relevant concepts of forced delisting and the theories ofinformationasymmetry,corporategovernanceandincompletecontract,thecasestudymethodandliteratureanalysismethodareadoptedforthestudy.Specificallyspeaking, this paper firstly summarizes the current situation of compulsorydelisting of listed companies in China, and analyzes the defects of the delistingsystemtopavethewayforthefollowingspecificresearch.Then,onthebasisofintroducingthebasicsituationofthecase,thispaperanalyzesindetailtheinternalandexternalfactorsthatleadtothedelistingofinquijimediaandtheirinfluenceoninvestors,andanalyzestheprotectionoftherightsandinterestsofsmallandmedium-sizedinvestors.Finally,theconclusionisdrawnthatthemainproblemsofcompulsorydelistingsystemoflistedcompaniesinChinaarethesinglequalitydelistingstandard,thelackofcorporategovernanceidentificationandsupervisionsystem,andthelackofsoundprotectionmechanismfortherightsandinterestsofsmallandmedium-sizedinvestors.Basedontheresearchconclusion,thisarticlefinally from regulators, listed companies and investors three point of view, thediscussiononhowtooptimizethedelistingsystem,perfectingthemechanismofprotecting minority investors’ rights and puts forward the specificcountermeasures,tolistedcompanieshowtostrengthenthemanagementoftheirown at the same time avoid delisting risk, and how to avoid investment riskinvestorssuchaseffectiveSuggestionsareputforward.Underthesituationthatdelistinghasattractedmoreandmoreattention,thispaperhopestoprovidetheoreticalandpracticalreferenceforimprovingdelistingsystem and avoiding losses suffered by listed companies and investors due toforceddelistingbyanalyzingsomerepresentativecases.