Research On The Motivation And Risk Of The "Risk-free" Stockholding Increasing

In 2015 in the economic market bubble burst,in order to boost the market,the Securities and Exchange Commission put forward the "five select one" requirements,some listed companies,the controlling shareholders,the actual controller by means of listed companies issued an announcement calling on the company’s employees to increase.ease the company’s stock,and with the underwriting to make up for the loss of commitment,while all the profits go to the individual employees,in such a In this context,"underwritten shareholding" was born.In recent years,underwritten shareholding has been favored by many companies,especially small and medium-sized listed companyes with narrow financing channels,as a way to increase shareholding with fewer restrictions and lower costs and without diluting the value of the company’s shares.However,with the development of underwritten shareholding in recent years,the chaotic phenomenon of major shareholders cutting their holdings to take advantage of profits and pledges "running away" has occurred frequently,but there is a lack of research on the motives,effects and compliance of underwritten shareholding,and the motives and risks of listed companies implementing underwritten shareholding are of great concern to the market.This paper first summarizes the current situation and characteristics of touted holdings by reviewing the touted is holdings events from 2017 to 2022,and finds that touted holdings were most sought after in 2018,and the market’s attitude toward touted holdings has gradually become rational in recent years,and the number of holdings has sharply decreased.In the case study section,this paper selects the underwriting increase announcement made by Zhongshun Jiezuo Paper Co.in May 2021 as a case study,and analyzes the market effect of this underwriting increase by analyzing the specific treaty of Zhongshun Jiezuo,the share price movement,the company’s financial performance about this event,and the excess return rate.The motives and risks of the underwriting plan of Zhongshun Jiezuo are analyzed.The study finds that the underwriting scheme can boost the share price in the short term,build a positive image for the company,and help improve the company’s short-term operating capacity and growth ability,but it doesn’t have a great contribute to the long-term effect.Combined with the underwritten shareholding increases in recent years,it is found that due to the lack of regulatory system,underwritten shareholding increases may become a tool for major shareholders to reduce their holdings for cash and manipulate the stock market for personal gain,which damages the interests of other shareholders,disrupts the order of the capital market and brings greater credit risk to listed companies.This paper makes suggestions at the regulatory level and investor level,taking into account the development overview of touted shareholding increase and the case companies.The system should raise the threshold for issuing underwriting calls,strengthen the rules of information disclosure,increase the mandatory fulfillment of underwriting commitments and impose restrictions on the increase or decrease of holdings by major shareholders,including the pledges.Investors need to keep a clear head,improve their professionalism,analyze the procedural compliance and reasonableness of the underwriting call,pay close attention to the top-level dynamics and performance of listed companies,and withdraw in time to avoid being trapped at high levels.