Research On Means,motivation And Economic Consequences Of Substantial Shareholders' Reduction

After the completion of the self-separation reform in China,Shareholders can circulate shares.This strengthens the vitality of the capital market.But at the same time,the number of major shareholders reducing their holdings is increasing.The major shareholders of listed companies have turned their emphasis from the company's performance to the stocks.They use the reduction of stocks in the secondary market for private gain,which casts a shadow over the turbulent capital market.Relevant laws in China have not yet effectively restrained the improper reduction of holdings of large shareholders.Large shareholders rely on superiority to obtain returns through capital operation drill holes in regulations,which will damage the interests of small and medium investors and disrupt the financial market order.However,it is foreseeable that,the manipulate pattern of shareholders' holdings will be more secret and intricacy,and the difficulty of supervision and risk precaution may be escalated.Therefore,it is a trend to learn the behavior of major shareholders to reduce their holdings of shares,and it is of paramount importance to regulate the behavior of major shareholders to reduce their holdings.Based on the continuous large-scale reduction of the shareholders of Tianlong Group As the research object,the methods,motivations and results of the major shareholders of Tianlong Group in order to achieve a substantial reduction in shareholding were analyzed separately.After analysis,it is found that the shortcomings of the reduction system and the corporate governance structure provide opportunities for large shareholders to reduce their holdings.Large shareholders will also reduce their holdings due to the company's poor operating conditions,risk aversion and arbitrage.In this article,the major shareholders of Tianlong Group use high transfers,frequent mergers and acquisitions,and manipulation of information disclosure to push up the stock price,and then reduce their holdings to obtain huge returns.Such reductions will have a negative impact on China's market,exposing China's capital market to irregularities,causing the company's stock price to collapse,financial competitiveness,and the company's market value to shrink severely.As a result,the shareholders' rights and interests of small and medium investors in the secondary market are seriously damaged.Finally,based on the above issues,this article puts forward proposals to regulate the governance of major shareholder reductions.The government must further improve the reduction regulations,the company must establish a sound equity balance system.At the shareholder level,major shareholders need to be away from illegal activities,and small and medium shareholders should improve their investment knowledge.Therefore,through the study of case companies,it will not only help market regulators to formulate reduction policies;The company can avoid the risks brought by the substantial reduction in holdings and make strategies that are conducive to the company's stable operation.