Research On Chinese Delisting System From ST’s Approach Of Preserving Listed Status

After more than 20 years of development in China’s capital market,while the market scale has been continuously expanding,the relevant delisting system has also experienced a gradual development from scratch,and the system itself from wide to strict.An effective delisting system can raise the efficiency of the stock market resource allocation and improve the overall quality of listed companies,while the effectiveness of this system is a critical criterion for measuring the maturity of a stock market.Compared with mature capital markets,China’s delisting system is still relatively fragile.ST system,as an important part of delisting system,its effectiveness has aroused extensive debate in academia.The original intention of the ST system was to serve as a reminder of investment risks and to convey companies’ abnormal financial situation to the market.In practice,however,there is a trend of speculation in the ST sector.At the same time,many listed companies facing delisting also take advantage of the system to resurrect.This thesis mainly employs comparative analysis and case analysis,which can be divided into five parts.The first part introduces the research background and significance,clarifies the ideas,innovations and deficiencies.The second part presents the research basis,explains the elementary concepts and theoretical basis.In addition,this part analyzes the alterations of delisting system between China and the United States from the features of standard and procedure,so as to summarize the characteristics of delisting system of mature stock market.The third part is the case analysis,mainly introduces the information and financial situation of Jingcheng Co.,Ltd.The fourth part focuses on the twice act of retaining listed qualification of Jingcheng Co.,Ltd.,and reveals why it has the strong willingness to retain listed status from both perspectives of external pressures and internal motivations.This analysis reviews its common means to maintain status,such as reorganization,extraordinary item,major accounting estimates and accounting changes,etc.Moreover,this analysis reveals the impact of these two cases and clarifies the problems.Part five draws conclusions according to the difficulties in the case.Referring to the practical experience of mature capital market,this thesis proposes suggestions for how to optimize China’s delisting system from the view of optimizing standard,simplifying process,allocating the supervisory authority,and establishing the investor protection mechanisms.