Research On The Re-Listing Path And Effect Of Delisted Enterprises

China’s capital market has been facing the problem of "delisting difficulty" for a long time.In order to effectively solve this problem,China promulgated the enterprise delisting system in 2001.In order to improve the market mechanism of "entry and exit" in China’s capital market and create a smooth export market environment,the re listing system was officially implemented in 2012.The introduction and improvement of the relisting system have a promoting effect on building an efficient capital market with input and output,and have conveyed positive information to delisted enterprises.The relisting system aims to guide enterprises to improve their business performance,enhance their competitiveness,improve their sustainable business capabilities,improve their governance structure,meet the relisting targets,and return to the capital market.Although both the Shanghai and Shenzhen stock exchanges introduced regulations for delisted companies to relist in2012,it was not until 2018 that the first company to return to the A-share market emerged.And with the comprehensive implementation of China’s registration system and the introduction of strict delisting regulations by the end of 2020,more enterprises will exit the capital market in the future.Therefore,the path chosen by delisted companies to relist has sparked widespread discussion.The successful re listing of Huilv Ecology after 16 years indicates that it has significant reference significance in specific path selection.Huilv Ecology,as the third company to achieve a re listing and also the first private enterprise to return to the A-share market,has increased the confidence of countless delisted private enterprises to return to the A-share market.This article selects Huilv Ecology Re listing as a case study,guided by the theory of enterprise lifecycle,pecking order financing,and stakeholder theory.After reviewing the basic situation and re listing process of Huilv Ecology Company,it is understood that the company chose to re list due to financing needs,strict IPO review,and deteriorating financial situation.Thus,further analyzing the specific paths of debt treatment,asset restructuring,equity adjustment,and corporate governance implementation during the company’s re listing process,and using financial indicator analysis and principal component analysis to comprehensively analyze,it can be seen that Huilv Ecology has greatly improved its financial situation,restored its profitability and sustainable operation ability,and ultimately achieved a return to A-shares in the process of seeking re listing and continuous restructuring.In addition,this article also explores the risks hidden behind the short-term and long-term market reactions of a company’s re listing,and provides a detailed analysis of the market response effect of Huilv Ecology re-listing.In this regard,this article draws inspiration from three aspects: the need for re listed companies to comply with national strategies,a rational view of re listing,and the need for managers to strengthen risk awareness.Suggestions are also made for delisted companies and regulatory authorities.