Big Shareholders Hollowed Behavior Research

China's capital market started late,during transformation process from the beginning planned economy to the market economy in the current,China's enterprises have gradually changed from state owned to non-state owned enterprises.But the phenomenon that a single large shareholder control the entire firm is still very common,big shareholders often take advantage of the control power to occupy the assets of listed companies,guarantee asset,transfer of assets and do related party transactions and so on to seek personal gains.After the non-tradable shares reform,our country has promulgated a series of policies related to the problem of information disclosure of listing Corporation,relationships of the related party,transaction of the related party,placement and private placement and so on.These laws and regulations enhanced the awareness of the listing Corporation that disclosure of relevant information timely,but made a little contribution to improving the comprehensive competitiveness of listing Corporation and completing the internal control system of the listing Corporation.But with the improvement of the relevant laws,the approach that large shareholders tunneling listing Corporation be more subtle,and it will be harder to be founded by supervision departments.There are still some shortcomings in laws and regulations in our country,the listing Corporation's illegal punishment cost is relatively low,information asymmetry,the second agency problem is very serious in Chinese listed private-controlled companies,the tunneling of large shareholders of listed behavior repeated and the rights and interests of small and medium shareholders are difficult to be effectively protected.So,the study on shareholders' tunneling is necessary.This paper studied ZHUHAI ZHONGFU as a case,reviewed shareholder's tunneling events of ZHUHAI ZHONGFU.The analysis shows that the major shareholder of the hollowed listed companies mainly through: opening up the relationship,transferee equity,entering the listed company,becoming the major shareholder,cleaning the original executives,master the board of directors,and then listed companies pledged loans,there is increased cash flow,and then the acquisition of low-cost affiliated assets,high prices sold to listed companies,then through high dividends,the reduction stock for cash,asset restructuring and other acts hollowed out the listed company.The listed companies tunneling by major shareholders influences greatly,for the listed company itself is a devastating blow,it will cause the turmoil in the capital markets and the turbulence of medium and small shareholders and creditors.This article explained the influence of the tunneling of large shareholders of listing Corporation on medium and small shareholders,the value of the listing Corporation and capital market.And after the data analyzing,the problems of lacking the internal and external oversight are found.According to the relevant financial index data,each problem is specially analyzed reasonable.Finally,put forward the following suggestions: improve the structure of the board of directors,optimize the ownership structure,strengthen the supervision of information disclosure and improve the relevant laws and regulations,regulate intermediary organizations,increase the cost of illegal punishment,pay attention to the supervision of the media on the listing Corporation,protect the interests of minority shareholders.