CaseStudy Of Sinovel Wind Group Co.,Ltd. Forced Delisting

With the in-depth advancement of the reform of my country’s capital market system,the capital market has gradually radiated new vitality and has gradually moved towards maturity and standardization.Previously,the registration system has been piloted on the Science and Technology Innovation Board to vigorously support the listing of high-quality companies and eliminate some low-quality companies.Because high-quality target companies are difficult to go public,and some companies that are about to delist can avoid delisting through debt restructuring,and listed companies can also avoid delisting with the help of the local government.Therefore,"smart funds" in the market have been set off.The speculative frenzy of "protecting the shell" and the full implementation of the registration system have effectively curbed the speculative behavior of the "protection of the shell",improved the delisting system of listed companies,made the delisting of listed companies the norm,and improved the efficiency of capital market capital allocation.In the year when the full registration system is implemented in 2020,this article selects the first Sinovel wind power to delist below face value in 2020 as the main research body,and uses the method of case study to study the main reasons for its delisting in detail.In analyzing the process of Huarui Wind Power’s delisting,this article first introduces the research status and practical significance of delisting at home and abroad.During the analysis process,it was found that Huarui Wind Power’s breakthrough was mainly divided into two aspects:internal factors and external factors.Internal factors were the main factors for Huarui Wind Power’s final delisting.The company adopted an aggressive expansion strategy from the beginning of its establishment.The original business model has not been changed,and changes in the external economic environment have not been changed.The important thing is that the introduction of a large amount of market capital after the listing has led to the dispersion of the company’s internal equity structure and the confusion of the equity structure,resulting in distinct factional disputes,and improper management based on the equity structure.The frequent replacement of management personnel has resulted in a decline in corporate profitability.Secondly,the high-transfer dividend decision is also the reason for the delisting of the company’s face value,and the company’s financial disclosure also has irregular operations,making the stock price of the secondary market all the way down.External factors are secondary factors,mainly including the domestic economic slowdown at that time,the market is full and overcapacity and other reasons.Under internal and external troubles,Sinovel Wind Power’s share price fell below the par value and was forced to delist.As the eighth delisted company in my country’s securities market,Sinovel Wind Power highlights the function of survival of the fittest in my country’s capital market and is a sign of the maturity of the capital market.The case analysis in this article has profound warning significance for the regulatory level,listed companies and company management.The research and summary reminded that listed companies should have a certain understanding of the delisting system,managers should pay attention to the company’s development plan,have a certain understanding of the cycle of macroeconomic changes,and the company’s internal operation and management should aim at the company’s continued strength.All personnel should put the company’s interests first.