Investment Services Centre And Small And Medium Investor Protection

Small and medium-sized investors are one of the main participants in China’s capital market.However,due to the late start of China’s capital market,the relative supporting system is backward,and the high concentration of shares in listed companies in China,the rights and interests of small and medium-sized investors are vulnerable to infringement.In order to strengthen the protection of the rights and interests of small and medium-sized investors,China’s Securities Regulatory Commission and Insurance Bureau took the lead in establishing the China Securities and Exchange Commission’s Small and Medium Investors Service Centre in December 2014.Since then,the Investment Service Center has played an important role in protecting small and medium-sized investors in our capital markets.In addition,with the rapid development of China’s market economy and the surge of capital markets,M & A reorganization has become one of the means for listed companies to quickly realize the extension of capital territory.However,M & A restructuring is also a double-edged sword.At present,many listed companies in our country achieve various undesirable goals by means of M & A restructuring,which ultimately damages the interests of minority shareholders.Against this background,the role of the investment service center,the institution that protects the rights and interests of small and medium-sized investors,in the process of M & A restructuring is of great importance.Therefore,it is of great significance to discuss the issues of CIC and the protection of small and medium-sized investment in M & A reorganization.In order to solve the shortcomings of the existing literature,this study starts with the reorganization of enterprise mergers and acquisitions,and discusses the protection function of CSIC for small and medium-sized investors.Taking the case study as the main method,this thesis selects three listed companies that participate in M & A reorganization from three aspects: Tongda Enterprise,Runda Health Care and Beauty Ecology,and analyzes the role of M & A participation in the protection of small and medium-sized investors from the aspects of M &A pre-participation,question in the event and post-right relief.In addition,in order to comprehensively explore the role of CIC in the three cases,this study also discusses the relationship between CIC and the protection of small and medium-sized investors in M & A from three aspects: the influence mechanism of CIC’s role,the core focus of CIC and the effect of the protection of small and medium-sized investors.According to three cases,after the investment service center participated in the media briefing on the reorganization of Tongda’s enterprise,the company disclosed the details of the reorganization in more detail,and finally abandoned the reorganization under pressure from many sources;The CVS questioned Roundup’s commitment to health care performance,which ultimately led the company to add more to its disclosures and tweet a response to questions.With the support of the Investment Service Center,the lawsuit filed by the shareholders of Beauty Eco Misrepresentation has been effectively compensated.It can be seen that the operation of the investment service center has obvious effect and effectively protects the legal rights and interests of minority shareholders.Based on the analysis of three cases,it can be found that the influence mechanism of CSIC on the protection of minority shareholders’ rights includes the obvious deterrent effect of official background and regulatory color,the cost of minority shareholders’ rights protection which is reduced by public welfare and professionalism,and the awareness of minority shareholders’ rights protection which is aroused by the active demonstration of the right of action.In M & A restructuring,CIC focuses on the valuation of the underlying assets,M & A goodwill,and performance commitment and compensation.Moreover,despite some limitations in its capacity,the Investment Service Centre has been able to protect the rights of small and medium-sized investors in M & A restructuring.It is found that the investment service center can demonstrate the exercise of shareholder rights and arouse the shareholder consciousness of minority investors.Can urge enterprises to regulate their operations and improve the quality of information disclosure;It can also urge intermediaries and independent directors to do their job diligently and play a "gatekeeper" role.This study takes the form of multi-case analysis,takes the investment service center as the object,studies the new mechanism of market supervision of public welfare organizations in China,enriches the related literature of the investor protection mechanism in China,and verifies the effect of the change of supervision mode of capital market in China from case analysis.This study takes the role of the investment service center in the enterprise merger and reorganization as an entry point,and discusses the ways in which the investment service center protects the interests of small and medium-sized investors,which will play a positive role in the future when the investment service center participates in enterprise merger and reorganization.