Study On Forced Delisting Of Listed Companies Under Strong Regulatory Environment

The delisting system of listed companies is an important part of the stock market system,which is an institutional arrangement that regulates the orderly withdrawal of listed companies from the stock market and regulates the relationship between the parties in the process of exiting the market.The delisting system of listed companies plays an important role in optimizing the allocation of resources,promoting the survival of the fittest,improving the quality of listed companies and protecting the legitimate rights and interests of investors.The delisting system in China first appeared in the company law in 1994.With the development of the capital market,it has been continuously enriched and improved.In recent years,the regulator has repeatedly optimized the A-share delisting system,and a strong regulatory environment has also been continuously formed.In July 2018,the CSRC issued the <Decision on Amending “Several Opinions on Reform,Perfection and Strict Implementation of the Delisting System of Listed Companies”>,this decision revised “The 2014 Opinions”.In November 2018,the Shanghai Stock Exchange and the Shenzhen Stock Exchange formally issued the “Implementation Measures for Compulsory Delisting of Listed Companies”,revised and improved the “Stock Listing Rules” and “Implementation Measures for Relisting of Delisted Companies”,etc.The number of companies that have been forced to delist in 2018 is increasing,especially in 2019,there have been 12 companies that have been or will be forced to delist.This paper sorts out the current situation of the development of the compulsory delisting system in the A-share market and analyzes its existing problems,and then selectes * ST Huaye among the companies that will be delisted in 2019 for case analysis.First,this article gives a brief overview of the development history,shareholding structure,financial status and delisting process of * ST Huaye,and then analyzes the reasons for its delisting through internal and external factors,and describes the impact of its forced delisting.Finally,some suggestions were made on how to improve the delisting system,how listed companies can prevent delisting risks,and how to strengthen the protection of small and medium investors.This article through the case analysis and discussion of * ST Huaye Company can enrich the relevant literature and case studies,and has certain reference significance for improving the quality of listed companies,increasing investor confidence,and promoting the formation of a market ecology of survival of the fittest.