| The "three red lines" and "three principles" of market value management of listed companies proposed by the SFC in 2021 have dealt a precise blow to traditional pseudo market value management tactics such as M&A restructuring,high transfer and equity pledging.However,listed companies with pseudo market capitalisation management still induce investors to make irrational decisions by disclosing non-substantial positive information,and major shareholders reduce their holdings to cash in on information-based market manipulation.This kind of information-based market manipulation is characterised by concealment,late detection,difficulty in obtaining evidence and difficulty in conviction.At the same time,this tactic obscures the price discovery function of the securities market,violates the principle of fairness in trading,damages the interests of small and medium-sized investors and disrupts the stability of the financial market.The existing information disclosure system "Guidelines on the Content and Format of Information Disclosure by Companies Issuing Public Securities" and the legal regulations "Securities Law" and "Guidelines on the Determination of Securities Market Manipulation" cannot achieve effective regulation of information-based market manipulation.Therefore,it is important to study the motives and paths of information-based market manipulation from the perspective of pseudo market value management,analyze its impact on corporate performance and market value management,and improve relevant laws and regulations and information disclosure systems to regulate information-based market manipulation.This paper selects Jin Yun Laser as the research object,analyses the motives,paths and impacts of its pseudo market value management using information-based market manipulation,and puts forward relevant suggestions for regulating information-based market manipulation.Firstly,the major shareholder of Golden Fortune Laser,in the context of weak development of its main business and poor market value,engaged in information-based market manipulation by disclosing non-substantial positive information for "hot speculation",raising the market value of the company and then reducing its holdings to cash out.Secondly,given the unstable performance of Golden Fortune Laser and the small number of shareholders,the pseudo market capitalisation management was artificially accomplished internally by buying shares at low prices from related parties,manipulating the tone of the annual report,media speculation and controlling the timing and rhythm of the release of positive information,thus engaging in information-based market manipulation.Again,this paper finds that informationbased market manipulation leads to an increase in short-term market performance and a decrease in both long-term market performance and corporate financial performance through the event study method and the entropy weighting method.Finally,the analysis of the market capitalisation management evaluation model reveals that informationbased market manipulation only leads to short-term market capitalisation but does not lead to long-term value creation and value realisation.This paper helps the exchange to introduce a market maker system on the GEM to provide bid and offer quotes,strengthen the market price discovery function and combat pseudo market capitalisation management from an institutional perspective;it helps the regulator to clarify the penalty criteria,increase the strength of punishment and improve the legal regulation related to the supervision of information-based market manipulation;it helps the regulator to innovate regulatory tools and use financial regulatory technology to sense the pattern of market manipulation and reduce information asymmetry It will also help the regulator to optimise the information disclosure system,strengthen the text tone quality regulation,clarify the professional responsibility of the media industry and create a transparent investment environment. |
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