Research On Information-based Market Manipulation Under The Reduction Of Major Shareholders' Holdings

Since the implementation of China's share division reform system,the phenomenon of large shareholder's illegal reduction has intensified,showing that the reduction is more strong,and has a stronger timing.As one of the important parts of the securities market,the stock market has been a marketing manipulation since its birth.It restricts the effective play of the resource allocation function of stock market,which causes great harm to the healthy development of China's stock market.At present,China's market manipulation has undergone new changes,in the past is often dominated by traditional transactional market manipulation,but now in the name of "market capitalisation management" to carry out information market manipulation has been common,large shareholders use their own advantages of information,to release a variety of positive information on the market,Thus interferes with the investors ' normal investment analysis decision,achieves the goal of manipulating the market and reducing the reduction.On the December 19,2014,the SFC first pointed out the market manipulation of illegal information disclosure in the name of market capitalisation management,but it was not until January 23,2017 that the "Xu Xiang Case" became the first case of punishment by the SFC.Although China's regulatory bodies continue to introduce policies to standardize the reduction of major shareholders and market manipulation,but the relevant measures are not highly targeted.Combining the case analysis method with the event research method,this paper combs the course of the reduction of the major shareholder of Heng Kang Medical,analyzes the reasons for the manipulation of the information-based market before its reduction,and probes into its investment mode of "butterfly color asset + Heng Kang medical" to form the benefit bundle,the timing of the intensive disclosure of the positive announcement,Use M & amp;a insider information to push up stock prices and match earnings management to improve performance and other forms of performance.In addition,the event research method is used to analyze the market reaction before and after the announcement of the good disclosure,and it is found that the large shareholders intend to use the name of "market capitalisation management",release good information for stock price manipulation to push up the stock price,good information will bring positive excess income to the company's shares,It is found that this behavior glorifies the report in a short period of time,but the large shareholder's reduction in the stock price high is a long-term pressure and risk to the company's operation,and also infringes the interests of small and medium-sized investors.Using Tobin Q to analyze the change of company value,it is found that the information market manipulation behavior under the reduction of large shareholders.Finally,this paper also puts forward a series of countermeasures and suggestions on how to restrain the information market manipulation behavior under the reduction of major shareholders,hoping to be of some enlightenment to the protection of the rights and interests of small and medium-sized investors and the improvement of the existing regulations.