Research On The Compulsory Delisting Of "*ST Xindu"

The healthy stock market needs a strict delisting system it will optimize the allocation of resources.The establishment of two exchanges(Shanghai Stock Exchange and Shenzhen Stock Exchange)in 1990 marked the formal birth of China's securities market.And until April 1998,the Shanghai and Shenzhen Stock Exchange for the first time mandatory listing of listed companies to make provisions,to November 16,2014 stricter delisting of the new rules formally landed,compulsory delisting again Obviously,but there are few listed companies that are forced to delisting from the market.In addition to the delisting caused by mergers and acquisitions,one listed company was delisted before 1998 and a total of 55 listed companies were delisted between 1998 and 2014.From 2015 to 2017,a total of 5 listed companies will be delisting or will soon Delisting As of December 31,2017,a total of more than 3280 listed companies in China's A-share market calculated a delisting rate of only 1.83%,with an average annual delisting rate of only 0.11%,far below that of developed countries such as Europe and the United States Market rate,the developed countries in Europe and the United States delisting rate is generally 6% to 8%.Generally speaking,the delisting of listed companies is divided into voluntary delisting and compulsory delisting.Compared with voluntary delisting,which is mainly for privatization or annexation,the interests of compulsory delisting of listed companies are more complex,so there are still more problems.Why is the number of listed companies compulsory delisting from stock market in China less? Why are listed companies being compulsory delisting from the market? What are the economic consequences of compulsory delisting? All these are worth our consideration.This paper explores the reasons for such problems through specific cases and puts forward some suggestions.This article selects "*ST Xindu" as the analysis object."* ST Xindu" was the first one in 2014 when the latest regulations on delisting were implemented.The first one was listed on the market for two consecutive years after being issued with Inability to express opinion.It was forced to delisting from the market after the profit index failed to meet the requirements of the resumption of listing.At the same time,"*ST Xindu" because of its main business is relatively simple and good continuity,strong and analyze the rules.At the time of writing this article,there have been no research results for the "*ST Xindu",this thesis takes "*ST Xindu" in 2017 was forced to delisting from the market as an example to study.In the past,most scholars used the financial analysis method(such as Du Pont Analysis)to analyze the problem of compulsory delisting of listed companies.In this paper,Harvard analysis framework was used for all aspects of analysis,with a view to draw a conclusion beyond the financial level.This article from the listed company of our country's execution of is the related regulations of compulsory delisting,through to the "* ST Xindu" company in terms of changes in operating conditions,the shareholders of a company to introduce case company,and then,the process of case company delisted Harvard analysis framework which leads to the "* ST Xindu" in corporate governance problems,according to the specific problem to analyze the causes of the problem further puts forward Suggestions to other listed companies to avoid compulsory delisting.Through the analysis in this paper,the cause of the "* ST Xindu" delisting mainly failure(1)the internal governance structure,unreasonable equity structure is not very good effect on checks and balances to provide opportunities to implement the "hollowing out" big shareholders.(2)poor performance and weak market competitiveness;(3)the company does not have a clear strategic development goal,resulting in a lack of focus.According to the "* ST Xindu" delisted finally come to the conclusion that the cause of "* ST Xindu" compulsory delisting of revelation,should improve the internal governance structure of listed companies to arrange reasonable distribution of equity structure,promote main business performance guarantee strong profitability and science develop company strategy to guide the healthy development of three aspects against compulsory delisting risk.