Research On Government Supervision Strategy Of Large Shareholders’ Illegal Reduction

After more than 30 years of development,China’s capital market is also developing steadily from scratch.While fully learning from foreign practical experience,we should timely summarize the historical experience and lessons,and explore a suitable development path for China’s securities market in the process of continuous learning and research.As the capital market becomes more and more active,some illegal transactions are frequently exposed.Since the introduction of the relevant policies on the reform of non tradable shares in China,it marks that China’s stock market has officially entered the era of full circulation,and the restricted shares of major shareholders have been banned.They take this opportunity to shift the focus of their profits to the securities market.By manipulating the market and disclosing information in violation of regulations,they greatly reduce their shares after raising the stock price,and then obtain high returns,It not only disturbs the order of the securities market,but also damages the interests of small and medium-sized investors.In order to further standardize the reduction of shares by directors,supervisors and senior executives of listed companies,in 2015,2016 and 2017,the CSRC successively issued some legal documents,and with the help of market experience,gradually improved the laws and regulations to supervise and manage the reduction of shares by major shareholders.From the literature review,we can see that there are many works on the supervision of the illegal reduction of large shareholders,but there are few works from the perspective of evolutionary game.Therefore,based on the theory of market failure,the theory of information asymmetry and the theory of incomplete law,this paper comprehensively grasps the current situation of the reduction of large shareholders in China through four classic cases combined with practice,As well as the current government and other relevant parts of the situation,further summed up the deficiencies in the process of government supervision;Then,according to the government regulatory authorities and major shareholders to maximize their own interests,this paper summarizes the influencing factors of their strategic choice,constructs the game model before the regulatory authorities and major shareholders,and analyzes the evolution of mixed strategic Nash equilibrium,It is a dynamic process that major shareholders and government regulators choose and adjust their own strategies according to each other’s strategies,and draw the conclusion of evolution.Reduce the cost of supervision,with the help of the positive effect from the society,promote the government and regulatory departments to act actively,make the major shareholders bear the serious consequences after violating the rules,have a deterrent effect on them,increase the supervision of the relevant departments,and restrict the illegal reduction behavior of the major shareholders.Finally,from three different angles of clarifying the responsibilities of regulatory bodies at all levels,improving government regulatory laws and regulations,and innovating the concept of government regulation,we can improve the corresponding measures,improve the regulatory system,and strengthen the supervision of the government.