Research On The Mandatory Delisting System For Major Illegal Violation Of Social Public Security

Changsheng Bio-technology’s vaccine scandal prompted us to think about how the maj or illegal activities of listed companies are disciplined and regulated in the securities market,which brings opportunities for the reform of the main board delisting system.But in fact,the study of the delisting system of our country’s securities market must go back to the basic standards and working principles of the delisting mechanism,and then analyze the specific provisions and implementation effects of our country’s delisting system.The targeted discussion of the new regulations for mandatory delisting due to major illegal activities violating social public safety is included as well.In this paper,the ideas mentioned above are the basic framework.In addition to the conclusions,it is divided into five parts:the first part is the introduction,taking Changsheng Bio-technology’s vaccine scandal as the entry point.I make an analysis about how the listed company would be regulated by the delisting system after the occurrence of major illegal activities beyond the security market.Then the new regulations for mandatory delisting due to maj or illegal activities violating social public safety are introduced.It is believed that the new regulations have the significance of strengthening the liability of listed companies,improving the quality of listed companies,and connecting registration system.However,it is necessary to interpret the meaning and applicable procedures of "a major violation of social public safety".The second part is "Delisting system of listed companies and general delisting rules on the main board",which specifically analyzes the delisting system of listed companies and their functions and explains the general delisting standards and delisting procedures.In combination with the rights and responsibilities of the exchanges and the standard settings of most international trading markets,I try to clarify the operating mechanism of the delisting system and lay a theoretical foundation for analyzing the status quo and reform of our country’s delisting system.The third part is "mandatory delisting system for major public safety violations and its background".Firstly,the development process of our country’s delisting system is introduced,and the main defects of the current delisting standards are listed as follows:First,the lack of conceptualization behavior defines the entire delisting standard.Second,the quantitative standard is rough and easy to be misinterpreted.Third,the non-quantitative standard is vague and difficult to be applied.Based on the actual application of the mandatory delisting system and the defects of the delisting procedure and safeguard measures,it is argued that the subsequent delisting system in our country mainly focuses on three consecutive years.The standard of loss has not really been diversified to comprehensively examine the market,and it did not realize the inherent requirement of selecting the superior and eliminating the inferior.The fourth part is "Take ’major illegal activities violating social public safety’ as one of the delisting standards".First,the process of our country’s new regulation for mandatory delisting due to major illegal activities violating social public safety is demonstrated,and strives to reflect the innovation.Second,from the perspective of identifying the main exchange,the internal logic of the rules,and the practical significance,the rationality of the new system is explained.Third,starting from the analysis of the provisions,the interpretation and application of the new system are divided into two parts——determining the security field and the criterion for determining which extent means "significant",i.e.,the extent to which it is necessary to determine which the circumstances are severe or cause serious damages.Finally,this part attempts to provide a certain extraterritorial law reference for the mandatory delisting of major illegal violations of the social public security in the New York Stock Exchange by comparing the similarities and differences.The fifth part is "suggestions on the mandatory delisting system for major public safety violations".In response to the new regulations on mandatory delisting of public security,combined with China’s existing delisting rules and their practice,it is suggested that the implementation of the new rules may be dilemma:First,the new rules are still too general and lacking execution.Second,the implementation of the new rules is difficult to grasp.Third,the new rules still have defects in the information disclosure,delisting period and other systems.At the same time,reviewing the overall delisting system in China,I advocate the following three directions to develop the new rules:First,improve investor protection measures.Second,establish a long-term mechanism related to delisting.Third,design a strict and different delisting system for Science and Technology Innovation Board.