Case Study On Reduction Of Major Shareholder In Yongtai Energy

With the implementation of equity division reform in 2005,restricted shares are gradually lifted,they can circulate freely in the secondary market,and the phenomenon of large shareholders reduction of listed companies in China becomes more and more frequent.This behavior has brought huge impact to the capital market and disturbed the order of the market.Behind the large-scale reduction,it is usually the large shareholders who take advantage of their insiders to get the company's various information early,while cooperating with the release of good news.In order to promote the healthy development of the market,standardize the behavior of reducing holdings and protect the interests of minority shareholders,China Securities will continue to issue reduction regulations.In the face of the phenomenon of frequent reduction of large shareholders in listed companies,how to regulate the reduction of large shareholders has become a matter of great concern.This paper takes the reduction behavior of Yongtai energy major shareholders as the research object,adopts the literature research method,the case analysis method and the comparative analysis method.First,analyze the macro and micro background of Yongtai energy reduction,and introduce the specific reduction situation.Secondly,it analyzes the characteristics and reasons of the two-year reduction of Yongtai energy major shareholders.The main characteristics of the reduction in 2016 are the high reduction amount of major shareholders,and the main feature of 2018 is the reduction after lifting the ban,etc.,mainly due to the company's poor operating performance,the expected performance of major shareholders continues to decline and can obtain high returns,etc.Finally,the economic consequences of two-year reduction of Yongtai energy major shareholders are analyzed from four aspects: financial effect,non-financial effect,market reaction and minority shareholders.According to the analysis of this paper,it is found that because of the aggressive expansion scale,the company's performance is not good,which has a great impact on the behavior of large shareholders' reduction,at the same time,the reduction of large shareholders also has a certain negative impact on the company's operating performance,to some extent,the optimization of the company's equity structure butalso damage the image of the company,has a negative effect on the market and infringes on the interests of small and medium-sized shareholders.Finally,from the external supervision layer,the company and the small and medium-sized shareholders put forward the relevant suggestions,hoping that this can better regulate the behavior of large shareholders to reduce their holdings,protect the interests of small and medium-sized shareholders,and promote the healthy development of the capital market.