Research On The Path And Consequences Of The "Clear-out" Reduction Of Stocks By The Large Shareholders Of Listed Companies

After the split share structure reform,large-scale reductions of shares by large shareholders in China's capital market have frequently erupted,among which "clearance"reductions have attracted widespread attention from society and the market.The major shareholders of a listed company have more internal information and can accurately choose the timing to implement the reduction.This will affect the value of the company and the interests of small and medium shareholders.At the same time,it will also have a negative impact on the healthy development of the capital market and may even endanger financial Safety bottom line.In response to the market's wave of reductions in shares,the China Securities Regulatory Commission issued relevant regulations on the reduction of shareholders' shares in July 2015,January 2016,and May 2017,in order to guide shareholders to rationally reduce their shareholdings and manage the phenomenon of reductions.Therefore,in this context,a case-type focus study on the clearance reductions of holdings by major shareholders has important practical guiding value for the capital operation and regulatory policy formulation of listed companies.In this case,Wanbangda,a listed company on the GEM board,is selected.It combines theories of principal-agent,information asymmetry,control income and signal transmission,as well as the background of the relevant reduction system and the overview of reductions of major shareholders in recent years.The cause,path and economic consequences of the reduction are explored.The study found that the motivations of large shareholders for liquidation reduction include:in order to meet the company's project financing needs,to facilitate the introduction of strategic investors,and to meet their own arbitrage needs.Excessive equity concentration,flaws in the external reduction system,and irrational investment behavior of small and medium investors have provided favorable conditions for large shareholders.Wanbangda has been pushing forward through frequent manipulation of information disclosure,implementation of mergers and acquisitions to increase performance,and release of high delivery plans.The high stock price,in turn,the major shareholders launched a high-precision liquidation-type reduction.The economic consequences of this behavior for Wanbangda include:negative market response,decreased profitability,improved debt repayment ability in the short term,reduced operating capacity,reduced development capacity,and increased uncertainty in future development,while the second type of agency problems Relieved.Clearance reductions have harmed the rights and interests of small and medium investors,and at the same time have a significant negative impact on the company's overall development.Based on the above case studies,this article proposes that the policy enlightenment of further reducing the new regulations on holdings,refining the information disclosure system,appropriately extending the lock-up period for strategic investors,and broadening the financing channels for private enterprises.In addition,this article proposes that listed companies should establish a sound equity check and balance mechanism to encourage small and medium shareholders to actively participate in shareholders' meetings and corporate governance.At the same time,investors should establish rational investment concepts and other inspirations to further regulate the liquidation-type reduction in the capital market.While ensuring a certain degree of liquidity in the market,we will strengthen the protection of the legitimate rights and interests of small and medium investors and the maintenance of basic market order.