Empirical Research On The Impact Of The New Provisions Of Insider Reduction Of Listed Companies On The Equity Pledge Transaction

In terms of stabilizing the secondary market,protecting small and medium investors,and regulating the governance of listed companies,the system of restricting the reduction of shareholders of listed companies is very important to the securities market and is part of the basic system.The current regulations on reduction of holdings are scattered in the "Company Law","Securities Law",departmental regulations of the CSRC,normative documents,listing rules of the exchange and other documents,mainly from three aspects: applicable objects,applicable situations,and lock-up period..The current regulations on reduction of holdings are scattered in the "Company Law","Securities Law",departmental regulations of the CSRC,normative documents,listing rules of the exchange and other documents,mainly from three aspects: applicable objects,applicable situations,and lock-up periods.regulate.From 2015 to 2016,shareholders of listed companies continued to reduce their holdings,and the stock prices in the secondary market fluctuated violently.On the basis of the original shareholding reduction system,in 2017,CSRC issued the "Several Regulations on Share Reduction by Shareholders,Directors,Supervisors and Senior Management of Listed Companies" and the relevant implementation rules issued by the stock exchange(collectively referred to as the "New Regulations for Shareholding Reduction").After the original statutory lock-up period expires,the "New Regulations on Reduction of Shares" will impose additional restrictions on the reduction of major shareholders,directors,supervisors and senior executives in terms of reducing the number of holdings and strengthening information disclosure obligations under various transaction situations.The impact of the strict restriction measures after the statutory lock-up period on the "New Regulations on Reduction of Shareholdings" on the tender offer,block transactions,equity pledge and other markets has caused some controversy.Taking the standardized equity pledge transaction,namely the pledged repurchase transaction as an example,combined with the analysis of its transaction mode,the implementation of the "New Regulations on Reduction of Shares" may lead to increased pledge costs and restrictions on the exercise of pledge rights.In order to actually discuss the institutional effect of the "New Regulations on Share Reduction",based on the impact on equity pledge transactions,an empirical analysis is made based on the relevant market transaction data and relevant judicial enforcement cases before and after the implementation of the "New Regulations on Share Reduction".The empirical results show that after the implementation of the "New Regulations on Reduction of Shareholdings",the pledged repurchase market has shrunk as a whole,the cost of the pledged repurchase has risen,and the transaction willingness of transaction entities in the pledged market has declined,which also affects the judicial enforcement of pledged equity to a certain extent.Through the verification of empirical results,combined with existing research,the "New Regulations for Share Reduction" presents the following problems after implementation: First,the problem of supervision concept,that is,intervening in the market supply relationship,increasing the withdrawal of major shareholders,directors,supervisors and senior managers costs,but instead restricts market liquidity and opens up new regulatory loopholes.The second is legal issues,including the interpretation of "whether judicial enforcement should abide by the regulations",and the lack of a higher-level legal basis for the "New Regulations on Reduction of Shares" and the lack of certain and clear theoretical support.In order to effectively solve the above problems,first of all,it is necessary to change the supervision concept,correctly view the securities market,accurately grasp the reduction of holdings,start with information disclosure,rather than supply relationship,and refine the details of information disclosure.Secondly,for the problem of insufficient basis of the superior law,it is necessary to upgrade the legislative level and legally increase the administrative penalty.For the problems reflected in judicial enforcement,it is necessary to explain in detail the specific application situations and regulatory subjects of shareholding reduction through "judicial enforcement",and determine a plan that can balance the interests of creditors and other shareholders.For problems with insufficient theoretical basis,we can learn from the regulatory logic of SEC Rules 144 in the United States,focus on strengthening information disclosure,and strengthen law enforcement against insider trading and market manipulation.