Delisting System Between China And US And Comparative Analysis

As a part of the market economy,the stock market plays an important role in the rational allocation of resources, economic development, and improving the national income and other aspects. Listed companies are the important part of the securities market, and that whether listed companies run their quality well or not plays a vital role in the smooth development of the stock market. As an important part of the securities market system construction, Delisting mechanism is the effective protection for improving the quality of listed companies, and promoting of stock market prosperity. That whether delisting mechanism construction and run situation is perfect or not, health, will affect the run quality of listed companies of the country in the long-term. That whether the stockmarket resource allocation can be achieved or not will affect the extent of market risk control of the whole market.For the long term, China is lack of a sound delisting mechanism for listed companies, which results in that the illegal cases of stock market become more and more. There are a large number of low-grade companies in the securities market, which waste lots of social scarce resources, also, and causing the thick speculation atmosphere in the entire stock market, and affecting the market sound development. With the formal establishment of exit mechanism for listed companies, the era of just coming in and not going out of our stock market is finally over. However, the formal implementation of the exit mechanism has one decade so far, comparing with mature foreign markets, China’s delisting standards and delisting procedures need to be improved.This paper compares the current delisting mechanism of China and the United States and analyzes China’s stock market problems. The first part introduces the U.S. stock market delisting mature.This section describes the development of the NYSE and Nasdaq delisting system and their respective delisting standards and delisting process, and determine the results of delisting policy by analyzing the number of delisting companys in the NYSE and Nasdaq and the proportion of it. Followed by the study of Shanghai and Shenzhen stock delisting. This chapter firstly describes the development process of China’s securities market, delisting procedures and delisting criteria and find the data to analyze the results of delisting policy. The next part is an empirical analysis about the effect of policy implementation. the main idea is to analyze the phenomenon that the majority of ST stocks can be revoked ST and return the securities market and to find the factors contributing to ST’s revocation ST so that these companies can successfully get rid of back City of destiny. The article also reveals reasons why the implementation of the delisting system is not effective through empirical analysis and identify the factor that effects listed companies successfully revoke ST by the use of comparative analysis and the mean logistic regression analysis.The next is a comparison and analysis about the American system concluding the approval authority and the delisting standards and the implementation results. The last part is the conclusions and policy suggestions.There is one innovation of this paper:that is the study of the delisting system emphasizes the ways in which stocks are most likely to uncap, but this article is more concerned about the characteristics of companies which make them be most likely to be saved and from delisting, which means what nature and financial situation of the company was the first to be considered for revoked ST.