Case Study On Nanjing Tanker Corporation’s Relisting

With the development of the market,the issue of delisting has become increasingly serious.Shanghai Narcissus Electric Appliances Co.,Ltd.became China’s first delisting company due to four-years-losses in April 2001 and there were 101 delisted companies on the Shanghai and shenzhen stock exchanges by the end of 2019.In recent years,the Chinese government has continued to deepen reforms,improve the market economic environment,actively guide loss-making companies by improving related policies such as the Company Law and promote the improvement of the company’s re-listing system at the same time.NJTC withdrew from the stock market of the Shanghai Stock Exchange in June 2014 due to sustained losses from 2010 to 2013.As the first re-listed company in China,NJTC has aroused widespread concern in 2019.The thesis selects NJTC as the research case,analysis on its re-listing,and provides facts and references for all parties,which has theoretical and practical significance.The thesis adopts both theoretical analysis and case analysis.First,it defines the concepts of listing,delisting,and re-listing.Based on an overview of the re-listing system and current situation,the theoretical basis of the paper is introduced.Then the thesis introduced the basic situation of NJTC and its re-listing process.It also analyzes its internal and external reasons,the effects of relisting measures,the rationality of the re-listing and the impact on relevant stakeholders.The study found that the external reasons for NJTC re-listing are mainly about policy and institutional support,the warming situation of the industry,state-owned enterprise background and debt contract pressure.The main internal reasons are improving asset quality,resolving debt problems and improve the company’s capital structure,improving profitability,improve internal control systems and company management actively promoted re-listing due to internal financing needs and executive compensation.The re-listing of NJTC is reasonable,which is specifically reflected in that its financial indicators meet the re-listing requirements and the earnings management behavior is appropriate.In addition,the re-listing will have certain effects on the company’s investors,creditors and employees.Based on the research,the thesis gets inspiration and lessons concludes with the following three aspects:for companies,regulators and investors.Firstly,re-listing measures of NJTC can provide a reference for companies planning to re-list.Secondly,it is imperative for the regulatory authorities to improve the re-listing system and strengthen market supervision and punishment.At last,how to improve their own quality and invest rationally is crucial for investors.