Study On The Protection Of Small And Mediumsized Investors’ Rights And Interests In The Delisting Of Listed Companies

The Shanghai and Shenzhen Stock Exchanges issued the Rules for Listing Stocks on the Shanghai Stock Exchange and the Rules for Listing Stocks on the Shenzhen Stock Exchange respectively at the end of 2020,providing more detailed regulations on the delisting system.Since the implementation of the registration system for market offerings,China’s securities market has lowered the threshold for corporate entry.A strict delisting system is essential to achieve the purpose of eliminating the winners and losers in the capital market,which is also an important reflection of protecting the rights and interests of small and medium-sized investors.The new delisting rules optimize the existing delisting criteria for listed companies in four aspects: trading,financial,regulatory and material violations.The new delisting rules are of great significance to improve the export construction of China’s securities market,and most importantly,they provide strong institutional support for the protection of the rights and interests of small and medium-sized investors.Based on the problems of investor rights protection under the delisting system of listed companies,this paper,through the analysis and research of the delisting system of listed companies in China,argues that there is still much room for improvement of China’s delisting system and the investor protection system supporting the delisting system in terms of strengthening the protection of the rights and interests of small and medium-sized investors.At present,there is a problem of misuse of resolution mode in the new delisting rules,and there is a suspicion of encouraging fraud in the new rules of compulsory delisting for financial and major violations.The reason for this is that there is a misunderstanding about the protection of the rights and interests of small and mediumsized investors in China,and the initiative of small and medium-sized investors to defend their rights has not been fully released under the administrative-led securities market mechanism.This paper,through careful analysis and research,argues that in the active delisting system,the protection of the rights and interests of small and medium-sized investors should abandon the resolution model and build a compensation model with Chinese characteristics.In the compulsory delisting,the practice of double delisting standards in the financial category is not desirable,and there are a large number of poor quality listed companies in China’s securities market that need to be cleared from the securities market.The "and" in the specific provisions should be changed to "or" so as to more accurately identify those poor quality listed companies that are not beneficial to the development of the securities market.The criteria of mandatory delisting for major violations should further narrow the range of listed companies’ fraud,so that the criteria of delisting for major violations can play a severe deterrent effect on listed companies.In order to bring into play the motivation of small and medium-sized investors to take the initiative to defend their rights and interests,the legislature should gradually abolish the provisions related to front barriers.In addition,it should also provide assistance to the protection of the rights and interests of small and medium-sized investors by improving and refining the relevant provisions in the securities group litigation and early payment system.