Case Study On Reasons And Effects For Compulsory Delisting Of Chuying Agro-Pastoral

Chuying Agro-Pastoral,once known as "the NO.1 share of China’s pig raising",was terminated by Shenzhen Stock Exchange in October 2019.As the second listed company forced to delist due to its face value less than 1 yuan for 20 consecutive trading days,the nine-year capital market career of Chuying Agro-Pastoral came to an end.This paper reviews the reasons for Chuying Agro-Pastoral’s crisis,the impact of its forced delisting,which is a strong warning for listed companies in the same industry.The compulsory delisting of the Chuying Agro-pastoral is worth the reference of the whole capital market.The delisting system of listed companies play an essential role in stock market system.It is a strong regulation for delisting of listed companies.The delisting system of listed companies is crucial to form the capital market with optimized resource allocation,promote the quality of listed companies and improve the protection of investors’ legal rights and interests.This paper selects Chuying Agro-Pastoral as the research object,used the case study method,combined with the basic theory and literature of financial analysis,analyzed in detail the reasons why the Chuying Agro-Pastoral was forced to delist and the impact of its forced delisting,and put forward some enlightenment and suggestions.Firstly,this paper introduces the background and significance of the topic,the research on compulsory delisting of listed enterprises,the research methods,and the innovation.Secondly,this paper analyzes the theory of compulsory delisting of listed companies from four aspects: the concept and system of compulsory delisting of listed companies,the conditions of compulsory delisting,the relevant theoretical basis,and the impact of compulsory delisting.Then,the paper analyzes the case of Chuying Agro-Pastoral in three stages,and studies the reasons of Chuying Agro-Pastoral’s delisting from the surface and deep levels,and studies the impact of the delisting from listed companies and investorsFinally,based on the case study of the forced delisting of Chuying Agro-Pastoral,the paper gives enlightenment and suggestions from the perspective of listed companies,regulatory authorities and small and medium investors,aiming to further improve the delisting system of listed companies and promote the stable development of the capital market.