Research On The Delisting Avoidance Behavior Of Shanghai Fortune Holding Under The Delisting System

In 2020,The Shanghai and Shenzhen stock exchanges adjusted the delisting criteria in the stock listing rules.The main adjustment is to change the net profit index into the lowest net profit index after deducting non-recurrent gains and losses,cancel the suspension of listing and change the suspension of listing for three years and delisting for four years into direct delisting for two years.Predictably,this will make it easier for listed companies to delist.Previously,China’s listed companies tried to avoid the phenomenon of delisting,mainly because of the strict listing standards and slow process in China,resulting in the value of "shell resources".Many companies have resorted to earnings management and even financial fraud to avoid suspension in order to stay listed by changing their numbers in the short term.But these companies themselves have poor business performance,using means to avoid delisting is bound to bring losses to investors.So if this change to the delisting system does make it more difficult for listed companies to avoid delisting,it will better protect the interests of investors.Therefore,this thesis studies how the new regulations make it difficult for listed companies to avoid delisting and its specific effects.In view of the fact that listed companies will take legal and illegal measures to avoid delisting,this thesis selects the case companies that have been backlocked twice and suspended listing from the delisting companies in 2021 to conduct research on evading delisting behavior.As the new regulation has not been issued for a long time,this thesis can only use the data of the old system for research,hoping to find the shortcomings of the new system with the old data.First analyze the effectiveness of the new system,and then analyze the shortcomings of the macro;Then it analyzes the effectiveness and deficiency of the new system from the perspective of case.Analysis found that the new system in a certain extent effective,embodied in inhibiting the non-recurring profit and loss of earnings manipulation method,clearing company have very low yield,the number of delisted cycle and delisting improve the efficiency of delisting,in case embodied in cannot use inventory write-down subjectivity to manipulate profits;However,the new system still has some shortcomings,such as the listed companies can still use the manipulation means of regular profit and loss earnings,real earnings manipulation means.Finally,based on the analysis,this thesis gives some suggestions: for the employee compensation should be demarcated in the accounting standards of the employee compensation subject boundary;For fixed assets,the same depreciation method shall be prescribed for similar assets;The delisting standards for major illegal categories should be further lowered.