A Research On The Reasons And Influences Of Chinasun Pharmaceutical Machinery’s Forced Delisting From The Market

The delisting system is a basic institutional arrangement for listed companies to standardize their exit from the capital market.In recent years,the China Regulatory Commission and the Shanghai/Shenzhen Stock Exchanges have started the adjustment and improvement of delisting systems.As the situation of "only in and out" is broken,the establishment of a new form of capital market with "in and out" will continue to be strengthened.Chinasun Pharmaceutical Machinery used to be a high-tech company that was highly valued by all investors.It was once the "first stock in China’s pharmaceutical equipment".After only nine years of listing,it was delisted and permanently withdrawn from the A-share market.What caused Chinasun Pharmaceutical Machinery to fall into the situation of forced delisting,and what impact did the forced delisting have had? This has a strong warning and reference significance for the listed companies and even the entire capital market.The reasons behind the delisting of Chinasun Pharmaceutical Machinery are worth exploring and analyzing;the series of impacts caused by its delisting should also be taken into account.Especially when the regulatory environment of the capital market is becoming more and more strict,how can listed companies stay away from the red line of delisting and avoid repeating the same mistakes of Qianyam Machine? The loss caused by the company;how the related authorities can further ensure the prosperous development of the capital market and protect the interest of the investors are all worthy of deeply research.This paper mainly adopts literature comparison method,comparative analysis and case study method to investigate and analyze the reasons and influence of the Qianyam Machine’s forced delisting.First of all,the relevant research literatures of domestic and foreign scholars are collected,and the reasons and influences of the delisting of listed companies discussed in the literature are sorted out.Secondly,it introduces the general situation of Chinasun Pharmaceutical Machinery Company and the process of forced delisting.Furthermore,with the help of three theories included Corporate Governance Theory,Information Asymmetry and Incomplete Contract Theory,this paper explores the reasons of the forced delisting of Chinasun Pharmaceutical Machinery,and analyzes the impact of its delisting.Finally,it draws inspiration from three perspectives of listed companies,investors and regulatory authorities.The following are the research results of this paper.(1)The forced delisting of Chinasun Pharmaceutical Machinery is the result of a combination of reasons.The superficial reasons for the forced delisting of Chinasun Pharmaceutical Machinery are the issuance of audit reports that cannot express opinions,negative financial indicators such as net assets,and information disclosure violations.Through further analysis,it is found that the underlying reasons for the forced delisting of Chinasun Pharmaceutical Machinery are mainly as follows: First,the internal control has major defects.The specific manifestations are: failure of internal control,management overriding internal control,huge amount of guarantees in violation of regulations,illegal occupation of funds by related companies and imperfect risk management system.Second,the diversification strategy is not implemented properly.The specific manifestations are:excessive diversification expansion,weak cost control and continuous loss of operating performance.The third is poor financing management.Specifically,it includes:unreasonable financing structure with a single tendency,a large number of debt defaults and inability to repay.(2)By analyzing the impact of the forced delisting of Chinasun Pharmaceutical Machinery,it is found that the company itself,investors and the capital market have all been affected to a certain extent.Qian Yam Machine Company itself has lost the channel to raise funds from the A-share market,and its already poor performance has become worse due to the delisting;the investors of Qian Yam Machine have suffered losses due to the delisting of Qian Yam Machine.,it lost all of its money,and severely hit its investment confidence;the forced delisting of Chinasun Pharmaceutical Machinery is conducive to the healthy development of the capital market.Finally,based on the above research,this paper gives the following advices:(1)Listed companies should improve internal governance and strengthen financial supervision;have realistic and reasonable goals,seek progress while developing stability;pay attention to financing management and be alert to debt risks.(2)Investors should invest rationally and pay more attention to the internal control effect of the target company.(3)Supervision make sure the quality of listed companies are accepted,strict the disclosure requirements of internal information of listed companies;make the delisting standards even better,especially related supporting systems.