The Case Study Of ST Zhangtong (SZ.002075)

Fraud cases of Chinese public companies have been repeatedly exposed recently. It’s a critical defect that it destroyed the public companies images and brings a great lost for investors and also the society. It infests the order of securities business, destroyed the resource allocation system of capital market, waver the investors’confidence to Chinese securities business. It brought out the critical effects to the society after all. Management problems of public companies catch attention of benefit counterparts such as securities supervised department, investors, creditors and so on. If the government laid back and let it take its course without efficiency restrict and management, it would bring out negative impact to the development of Chinese capital market, or hold back the sound development of the economy in China. This article is to analysis and study the connection of management structure of Chinese public companies and corrupt transaction based on the correlation studies, management structure of Chinese public companies, and take ST Zhangtong as the example of case.This article uses cases analysis of research. Consider based on the view of investors, together with the case of the company Gaoxin Zhangtong which has been ST at the next year of listed. It’s based on the open information from this public company, we dig and analyze the problems of company management and internal control. It takes the research of the administrative problem of ST Zhangtong in theoretical and logical way.We’ll take a look at the overview of research background, purpose, meaning, methods and the construction of the article at first, and then we’ll review the research documents of corrupt transaction on administration and operation from both mainland and overseas.We start from the administration environment of China’s mainland, with case of ST Zhangtong, have the research on the relativity of administration organization and the companies’operation system. Look for the relevance of public companies’operation management and administration structure. We provide suggestions and detail procedures of construction of credit system and external control system for public companies of our securities business.We notice that it’s higher possibility that corrupt transaction happens in the companies with unsuitable administration structure and lapsed internal control system through the research.When these public companies are with strong harmful motive, the imperfect administration structure and internal control system helps to remain a loophole and will become the most deep-seated reason of worsen operation. Besides, imperfect legal rules of the securities business and the nerveless external control environment results low cost of corrupt transaction, this become another reason of worsen operation and being ST at the end. After research of this case, we make some directive administration suggestions, in order to perfect the policy and legal rules for supervised department and to provide a lesson for the investors to protect their benefit, in a hope of building up the honest and fair investment in securities business in China’s mainland, to lower the risk and lessen the loss of investment.