A Case Study On The Large Shareholder’s Reverse Operation In The A Share And The Hong Kong Stock Market Of JT Company’s Stock

With the continuous development of China’s economy,the number of listed companies in A and H shares is increasing with a total number of 107 till December 2018.Given the fact that regulatory scheme and market pattern differ in the two kinds shares,the increase and decrease of the stock holding behavior in major shareholders ought to be given practical attention.The published papers of listed companies in A and H shares mostly focus on the motivation and harnessing of listed companies of two places,the reasons of the stock price difference in double listed companies are also included.By giving the examples of A and H shares cooperation,this article dedicated in discovering and premier discussing the opposite operation of the shares’ increase and decrease in JT Company’s major shareholder,which presents innovative research value.The paper introduces the company profile of the selected A+H share listed company JT Company and the specific situation of the company’s major shareholder JT Group’s three A-share and H-share reverse increase and decrease behaviors in April-July 2015.Incorporate the market profile of the major shareholder reduction and reverse increase and decrease behaviors of the entire A+H share market,relevant laws and regulations,company prospectus,annual financial statements and information of the 2015 interim financial statements,and explore the underlying logic behind these three increases and decreases.It analyzes the relationship between stock price division,company control rights change,capital operation and the reverse increase and decrease of major shareholders.Analyze the relationship between the company’s performance change,the increase and decrease of the time interval and the timing of the major shareholder’s reduction.At the same time,the event research method is used to study the impact of the behavior on the stock market.The major shareholders will increase or decrease the holdings of the two stock markets in order to obtain the stock premium difference between the two stock markets.This behavior can promote the circulation of capital in the two stock markets to a certain extent,but it will also infringe the rights and interests of small and medium investors in JT.This paper puts forward suggestions on how to regulate the reverse increase and decrease of major shareholders and protect the rights and interests of minority shareholders from three aspects: listed companies,regulators,and small and medium investors.Listed companies should improve corporate governance and strengthen supervision and control over the operation of major shareholder stocks.Regulators should improve relevant laws and regulations,strengthen the information disclosure requirements for major shareholder reductions,and increase penalties for companies that violate laws and regulations to alert them.At the same time,it should focus on supervising the behavior of large shareholders of double-listed companies to increase or decrease their holdings;small and medium-sized investors should raise their professional awareness and risk awareness.When focusing on different stocks of similar listed companies,they should focus on the signal transmission of large shareholder stock operation behavior to protect their rights and interests.