Study On The Compulsory Delisting Legal System Of The Main Board Of Listed Companies In China

China’s securities market has been advancing all the way since its formation.However,in sharp contrast to the development speed of China’s securities market,the delisting rate is extremely low.From 1999 to July 2019,there were 3,557 listed companies in China,while only 105 were delisted,according to Wind.In contrast,the number of delistings and ipos in foreign mature capital markets are basically equal.Delisting system is the most basic system of the capital market.If delisting system is not perfect,the foundation of the whole capital market is not solid.In addition,as the registration system becomes more and more popular,how to strike a balance between listing and delisting is related to the reform process of the capital market.Based on the core and dominant position of the main board market in securities trading,this paper intends to analyze and elaborate the mandatory delisting system of the main board in China from four parts:The first part introduces the relevant concepts of delisting system in China and makes a distinction between active delisting and forced delisting.This paper introduces the development of delisting system,and then expounds the necessity of establishing compulsory delisting system in theory and reality.The second part analyzes the predicament and problems of the compulsory delisting system in practice through the integration of relevant data.First of all,China’s main board mandatory delisted standard system is not complete,financial indicators are unreasonable,easy to be avoided.The most prominent point is that the index of "three consecutive years of losses" can avoid delisting by deducting net profits;Delisting index is not diversified enough and flexibility is poor.For example,there is a lack of market value standards,and indicators that can objectively reflect the company’s operating conditions have not been established.Secondly,China’s main board forced delisting procedures long,cumbersome.The delisting time is long,but the listed company should be delisting efficiently but "stay";After delisting,the "stock" of the company becomes worthless paper money,and the transfer board is not flexible enough,which makes the listed company unwilling to be delisted.Moreover,delisting is lack of effective protection for medium and small investors.Small and medium-sized investors in the forced delisting in the information weak position;After the delisting of the company,the road of litigation for minority shareholders is very difficult,the road of compensation is also very difficult.Finally,the low delisting rate in China is related to the insufficient enforcement of law by the regulatory authorities,and it shows that the new Securities Law is worthy of affirmation that the punishment for illegal acts has been enhanced,but whether it can play a deterrent role still needs the test and research of the market.Delisting of listed companies is closely related to the interests of the government and personnel,so delisting will inevitably be hindered.The third part selects typical examples of international mature securities markets,and introduces in detail the operation rules related to the mandatory delisting system of the Main board of the New York Stock Exchange and the East Stock Exchange,so as to provide reference for the later proposal of applying China’s localized mandatory delisting system.The fourth part,based on the problems raised in the second part and combining with the experience of the third part,puts forward some Suggestions to solve the delisting situation in China.First of all,in terms of delisting standards: improve the index of "three consecutiveyears of losses",and should deduct non-recurrent gains and losses when judging the net index;Improve the financial indicators and adopt composite indicators,which can evaluate the company’s financial status from all aspects and angles.Increase the market volume,transaction price and other transaction indicators,transaction indicators led by the market,more safe and efficient;We will establish delisting standards for dividends and guide the market from speculation to investment.Secondly,in terms of delisting procedures,it is proposed that relevant provisions of the new Securities Law should be implemented as soon as possible,and the delisting procedures should be further simplified by referring to the Science innovation Board.We will improve and develop the stock transfer system,promote joint efforts between the exchange market and the over-the-counter market,and open up circulation among various sectors.In addition,in the protection of small and medium-sized investors: accelerate the implementation of the new mode of securities litigation;Strengthen the combination of theory and practice to develop channels for investors’ compensation;Pay attention to investor-oriented,strengthen letter-letter quality.Finally,in terms of regulation:the concept of regulation should be changed;Strengthen the construction of law enforcement team;Optimize law enforcement methods,etc.