Study On Tunneling Of Major Shareholders-Based On The Case Of The Deluxe Family Co.,Ltd.

With the competition of the non-tradable share reform after 2005,Chinese security market has formally entered the full circulation Era.Originally,shareholders usually carry on the benefit delivery by related transaction,asset transform and etc.But now,reduction of cash has become the main methods for the strong stock holder to convey benefits.Before the non-tradable shares reform,as net assets are their main source of interest,the strong shareholders of the quoted company relatively pay more attention to the company's net assets.But after the non-tradable reform,non-tradable share obtain the rights of being listed and circulated without limitation.The strong stock holders start to pay close attention to the stock price change in the secondary stock market.After the introduction of the private placement in 2006,it is widely adopted by the capital market because of its unique advantages.Although the private placement can be a good solution for the listed company to refinance.The private placement involves the redistribution of the interests between the new shareholders and the shareholders who haven't received the additional stock.As the ownership of our company's listed companies is relatively concentrated and the legal and regulatory audits related to the targeted additional issuance haven't yet been fully improved.It provides the possibility for the strong stock holders to convey the benefit delivery to themselves by locking lower orienteering price,injecting highly valuated or inferior assets and etc.Along with the development and evolution of the securities market,the way of large shareholders' benefit delivery in the listed companies has transferred from unfair connected transaction,occupation of fund,associated guarantee to refinancing,control of earnings and etc,which are more difficult to supervise.This paper will make a targeted study of the Deluxe Family in order to analyze its orienteering of asset injection,reduction of shares in a listed company under the help of stock price manipulation and find its reasons for avoiding market supervision.And then aiming at the characteristics of this kind of benefit delivery,this paper will put forward some pertinent suggestions to solve the behavior of benefit delivery from the point of the difficulties in market supervision.This paper will utilize case study method to integrate the previous theoretical basis and obtain roots causing benefit delivery.I hope it can have some implications to the Regulatory,listed companies and investors.