Analysis Of The Rights And Interests Relief Of The Small And Medium Investors After The Compulsory Delisting Of Listed Company

With the success of the registration system of Star Market,the Securities Law of The People’s Republic of China,which has been revised for four years after four rounds of deliberation,has been formally implemented since March 1,2020.The formal implementation of the securities law makes it clear that the registration system is fully implemented in China’s securities capital market.This law also adds the independent chapters of "information disclosure" and "investor protection".Registration system and compulsory delisting is a foundational system of securities market,truly playing an important role in promoting the market effective allocation of resources,improving the governance of listed company,developing of the transparency and legalization of the capital market increasing market vitality and protecting the interest of investors.In the new delisting regulations,two kinds of compulsory delisting situations,namely,major securities violations and major public safety violations,have been determined after the fraud of Chang Sheng vaccine event.The situation and procedures of compulsory delisting of listed companies are more typed and specific,which improves the practical operability.However,after the compulsory delisting oflisted companies,the relief of the small and medium investors’ rights and interests has not kept up with the pace of the new delisting regulations.It can be seen from the fraud of Chang Sheng vaccine event that the relief of the small and medium investors’ rights and interests is also facing many difficulties in reality.This article will focus on analyzing the problems encountered by China’s the relief of the small and medium investors’ rights and interests in reality,referring to the system construction and practical experience of the mature capital market and providing some suggestions for China.This paper is mainly divided into four parts.The first part is the current situation of the rights and interests relief of the small and medium investors after the compulsory delisting of listed company from the fraud of Chang Sheng vaccine event.After analyzing and combing the basic theory,section 1 will clear and definite the types of delisting and delimit the emphases for research of this paper.At the same time,it clarifies the three major necessities of compulsory delisting: promoting the survival of the fittest of listed companies,forcing them to improve the level and quality of governance;safeguarding the rights and interests of investors and raising awareness of risk prevention;optimizing resource allocation and improving the healthy development of the capital market.Analyze the reasons and significance for the rights and interests relief of the small and medium investor’s from the three aspects of information asymmetry theory,principal-agent theory and financial cunsumer protection theory.Then,through the fraud of Chang Sheng vaccine event,it is found that the small and medium investors have many difficulties such as judicial filing,prove in litigation,execution of compensation.The second part is mainly to the analysis the civil compensation of the rights and interests relief of the small and medium investors after the compulsory delisting of listed company.This part launched in two aspects.The priority system of civil liability is difficult to implement.The advance compensation is not mature and difficult to popularize.After analyzing the current status of China’s system,this paper will find the problems in the actual operation and the system design can not meet thesocial expectation.By referring to the system construction and practical experience of mature capital market,this paper puts some suggestions of the FAIR Fund,Hong Kong’s "Restitution Order" approach and Priority System of civil liability.The third part is mainly to the analysis the rights channels’ problems of the rights and interests relief of the small and medium investors after the compulsory delisting of listed company.The small and medium investors have weak sense of safeguarding rights.It is difficult to mediation of securities disputes and guarantee the rights and interests relief.There are some problems of preposition procedure of administrative punishment,representative action and complicated litigation process.By referring to the system construction and practical experience of mature capital market,this paper puts some suggestions of education,mediation and class action.The fourth part,the summary paragraph of the thesis,gives some suggestions to improve the rights and interests relief of the small and medium investors after the compulsory delisting of listed company.First of all,strengthen publicity and education for investors through different institutions and different stages in order to enhance the consciousness of protecting rights of investors.Secondly,setting up a special compensation fund to make advance payments and implementing the principle of civil compensation priority.Lastly,learning the experiences of the class action from the US and making sure the ISC playing an important role in strengthening the mediation function,securities support litigation,establishing the "leading evil" litigation concept and using investor loss calculation software,etc.This paper will carry out specific analysis and provide targeted improvement opinions from these services and functions.In the conclusion part,the whole research process and main conclusions are summarized.