Research On The Compulsory Delisting System Of Listed Companies In China

Over the past thirty years of development in China’s securities market,a set of mandatory delisting systems with Chinese characteristics has gradually been formed.The Securities Law of the People’s Republic of China,in conjunction with the Listing Rules of the Shanghai and Shenzhen Stock Exchanges(hereinafter referred to as the Listing Rules),and supplemented by relevant policies and regulations in the securities industry,jointly form the system of mandatory delisting in China.The purpose of setting up a mandatory delisting system in the securities market is to clear listed companies that no longer meet the listing standards out of the securities market,thereby improving the utilization rate of funds in the securities market,optimizing resource allocation,and protecting investors.From the implementation history of China’s delisting system,financial fraud,illegal information disclosure,and insufficient business capabilities have become the main reasons for forced delisting,An efficient mandatory delisting system can promptly eliminate such listed companies that do not meet the listing standards,and it cooperates with the listing rules to dynamically regulate the order and efficiency of the securities market.This article evaluates the mandatory delisting companies based on their management capabilities,financial risks,profitability,and growth capabilities,and further discusses whether the current delisting standards and procedures in China are in line with the actual operating status and market laws of the current securities market,starting from the current implementation status of the delisting system and punishment.In addition,using case studies to illustrate the problems in the system,draw conclusions on the shortcomings of the system and provide suggestions for improvement.The first part mainly introduces the background of the topic selection,research significance,current research status in this field at home and abroad,research methods,innovation and shortcomings.The second part mainly clarifies the relevant concepts and characteristics of the delisting system for listed companies,introduces the contract theory and life cycle theory related to the delisting system,and elaborates on the three stages of development of China’s mandatory delisting system.The third part interprets the current mandatory delisting system for listed companies in China,and analyzes and discusses the overall situation of delisting implementation over the past two years,focusing on the application of delisting standards and procedures.In addition,a summary of the considerations for mandatory delisting companies in China is also provided.The fourth part focuses on evaluating China’s current mandatory delisting system from the perspectives of enterprise regulation,investor protection,and corporate governance.It is concluded that the current mandatory delisting system has problems such as loose trading delisting standards and imperfect delisting linkage mechanisms.The fifth part combines the contract theory and life cycle theory related to mandatory delisting to propose suggestions for further improvement and development of China’s delisting system.