Reduction Of Major Shareholders Of Cixing Shares And Protection Of Rights And Interests Of Small And Medium Investors

After the share-trading reform has basically ended,my country's capital market has entered an era of full circulation,that is,after the lock-up period ends,the stocks held by major shareholders can circulate freely in the secondary market.This means that major shareholders can acquire wealth in the stock market instead of focusing solely on the company.If major shareholders want to obtain higher returns from the market,they often use the rise and fall of stock prices to choose precise timing to make profits for themselves.Since large shareholders have more powerful control and information advantages than ordinary small and medium investors,they often have the motivation to manipulate the fluctuation of stock prices,and then profit by reducing their holdings.Such behavior often hurts It is a small and medium investor in the market.For example,Tianguang Zhongmao's major shareholders have repeatedly reduced their holdings for the purpose of personal gain,which has caused the company's stock price to plummet,and its operating performance is far below expectations.The disorderly reduction of holdings by major shareholders of listed companies is not an exception.How to regulate major shareholders' reductions and how to better protect the rights and interests of small and medium investors has attracted more and more attention from scholars and small and medium investors.This article studies the case of Cixing Co.,Ltd.'s major shareholders harming the rights and interests of small and medium-sized investors,using case study and literature research methods to analyze the process of Cixing Co.'s major shareholders' reduction,the operating methods before the reduction,and the impact of the reduction on small and medium investors.The influence of the economic and legal rights of the author.Major shareholders have adopted a variety of ways to reduce their holdings.Prior to the reduction,they also adopted merger transformation,information disclosure,and earnings management to beautify their performance,push up the stock price,and give the green light to reduce their holdings.In the end,the continuous and large-scale reduction of major shareholders not only reduces the stock investment gains of small and medium shareholders,but also is not conducive to the long-term value investment of small and medium shareholders.The main findings of this article are the following three points: In order to obtain higher returns through stock reduction,the major shareholders of Cixing Co.,Ltd.used three methods of merger transformation,information disclosure,and earnings management to push up the stock price,and successfully reduced their holdings at a high level;In the short term,the large-scale reduction of holdings by major shareholders will first cause negative excess returns due to stock price fluctuations;in the long term,a series of operations carried out by major shareholders in order to increase returns from reductions in holdings are not conducive to the company's operations and harm the company's operations.The interests of small and medium investors.Because,this article hopes to warn small and medium investors not to blindly pursue and prefer good information,but to analyze the company's behavioral methods and current operating conditions,and also warn major shareholders not to make a difference to the company for temporary benefits.Long-term development of unfavorable decisions.