Research On The Influencing Factors And Consequences Of Important Shareholder’s Illegal Stock Selling Of Listed Companies

The reduction of shareholders is the legitimate rights and interests of shareholders,but the important shareholders of listed companies use their own internal information advantages to illegally reduce their holdings,which will damage the interests of small and medium shareholders.Since 2015,the regulatory authorities have continuously introduced laws and regulations on shareholder reductions.The new ’ Securities Law ’ has increased penalties for illegal reductions.Although the reduction chaos has been alleviated,unreasonable reductions are still widespread.Therefore,this paper takes Wu Xi Apptec as an example to study the related behaviors and consequences of the reduction of important shareholders of the company.Wu Xi Apptec is a leading enterprise in the pharmaceutical R & D service industry in China,and it is also an outsourcing agency that many pharmaceutical companies rely on to reduce costs and risks.Under the background of increasing demand for new drugs,Wu Xi Apptec has developed rapidly.However,due to the characteristics of the industry itself and the influence of the international situation,the development of Wu Xi Apptec has encountered bottlenecks.In this context,Shanghai Yingyi,an important shareholder of Wu Xi Apptec,could not wait to carry out illegal reduction in the higher range of Wu Xi Apptec ’s stock price without fulfilling the obligation of information disclosure,and was finally punished by supervision.Through case studies,this paper shows that Wu Xi Apptec’s dividends are not attractive to shareholders,and Shanghai Yingyi reduced its holdings to achieve the purpose of cashing out.Moreover,there is also a risk aversion purpose in the process of Shanghai Yingying ’s illegal reduction.The weakening of external supervision has not effectively prevented the irregularities in the process of Shanghai Yingyi ’s reduction,and the related reduction has had a negative impact on minority shareholders,the company itself and the securities market.This study provides supporting evidence for understanding the reasons and economic consequences of the reduction of important shareholders of listed companies.