| A perfect delisting system is a prerequisite for the good and organized stock market growth,and along by the rapid expansion of China’s domestic securities industry,delisting-related laws have gradually been perfected.However,there are only a few delisted companies in China’s securities market,making the market as a whole present a low level of development.The important reason for this situation is that the delisting mechanism has failed to make a significant impact in China’s securities market.The establishment of a sound delisting system for listed companies is a basic prerequisite for the sustainable promotion of the equity capital market;the absolute fulfilment of regulations and laws is an imperative condition for the implementation of stable and systematic exchanges in the equity central market;the elimination of companies that have reached the red line of delisting is a fundamental guarantee for the formation of a virtuous cycle in the securities market.31 December 2020,a new round of delisting system reform was officially launched,and the release of the new delisting rules is conducive to The release of the new delisting rules is conducive to a quicker and better way to drive out good money from bad money,with fewer bad companies,more companies with good performance,less room for speculation and a more mature securities market.After the release of the new delisting rules in 2020,Qiu Lin Group was compulsorily delisted for touching financial category indicators.The compulsory delisting of Qiu Lin Group serves as a lesson for other listed companies and has a strong significance and warning effect.In this paper,the Qiu Lin Group is selected for a case study: firstly,the background significance of the topic is introduced,the literature related to the delisting system is sorted out,and the structure of the paper and the research methodology are determined;secondly,the concept of compulsory delisting is explained,and the theoretical basis of the case study is consolidated by listing the process,circumstances,effects and relevant theories of compulsory delisting of listed companies;then,the introduction of the Qiu Lin Group,the development history,the shareholding situation and the delisting process are reviewed from four aspects.The reasons for the forced delisting of the Qiu Lin Group are analysed from the perspective of risk management,including strategic risks arising from changes in the governance structure,operational risks arising from excessive management authority,legal risks arising from internal control failures,and financial risks arising from inappropriate asset guarantees.At the same time,the delisting of the Qiu Lin Group has caused multiple impacts such as narrowing of the company’s financing channels,loss of the benefits of middle and small shareholders,and improvement of the stock market’s capacity to distribute available assets;at this stage of the article,relevant insights and recommendations are drawn from the case study.Listed companies should implement risk management identification and response,improve internal control construction and enhance corporate operating performance,the equity exchange has to step up obligatory compensation for mandatory data leakage and develop a protective scheme for the minority market,and small and medium-sized investors should change their investment concepts and pay attention to the effectiveness of corporate internal control implementation;finally,the conclusion and outlook of the whole article are drawn.The forced delisting is a consequence of the Qulin Group’s failure to manage its risks properly and has had many implications for all participants in the securities market,but it also demonstrates that the delisting system is coming to the fore in terms of the elimination of winners and losers.The rapid development of China’s securities market has placed greater demands on the current delisting system.The mandatory delisting of Qiu Lin Group also serves as a reminder for listed companies to effectively identify and address risks,strengthen internal controls and focus on operational performance,so as to avoid being mandatorily delisted for having reached the delisting criteria. |
