Case Study Of ST U9 Game Delisting

The delisting system is an extremely important fundamental system in China’s capital market.Its main function is to force companies that have serious violations,significant performance decline,or other illegal situations to delist their stocks through this system,thus making them no longer eligible to trade on the securities market.The implementation of this system is beneficial to maintaining market order,protecting investor rights,and promoting the healthy development of the capital market.Since the formal establishment of the delisting system in China in 1999,the system has undergone many revisions and amendments aimed at further improving the delisting mechanism and enhancing its implementation effect.Currently,the implementation effect of the system has made significant progress compared to the past.This is due to the standardized management of the stock exchange and the strengthening of regulatory authorities,as well as the increased awareness and acceptance of the delisting system among market participants.With the completion of the latest round of delisting system revisions at the end of2020,China’s capital market has entered a period of normal delisting.This means that the delisting system will be further normalized and can better play its role.ST U9 Game,as one of the famous “Old Eight Stocks” in China’s securities market,was one of the first pilot joint-stock companies and listed companies in Shanghai when it was established in 2014.After its business transformation,it was one of the most promising stocks in the industry,but was delisted only six years later.The reasons and impact of this delisting provide insights and lessons for other listed companies in the same industry and the entire capital market.Particularly in the current context of increasingly strict delisting supervision,it is worth paying attention to and studying how listed companies can stay away from the delisting threshold,avoid the fate of ST U9 Game,how investors can avoid investment risks and reduce losses,and how regulatory authorities can continue to strengthen supervision and promote the healthy development of the capital market.This article employs methods such as literature research,quantitative analysis,comparative analysis,and case study to investigate and analyze the reasons and effects of U9 Game’s delisting.Firstly,by collecting relevant literature on the delisting of listed companies both domestically and internationally,the reasons for delisting are explored.Then,through data analysis and various literature and theories,the internal and external reasons for U9 Game’s delisting and the impact it caused are determined.Finally,the insights,recommendations,and conclusions of the research are presented.In conclusion,this study finds that the delisting of U9 Game is caused by various internal and external factors.The external reasons for U9 Game’s delisting include regulatory requirements for delisting are becoming stricter,unfavorable economic environment and cyclical factors in the product,adjustments in national industry policies,and intense external competitive pressure.Further analysis revealed that the internal reasons for U9 Game’s delisting are the following: single main business,insufficient profitability leading to a massive impairment of goodwill,improper business strategy,talent loss,low investment in research and development,and significant defects in the company’s internal governance.Finally,the entropy weight method was used to quantify the critical data of U9 Game and the industry to determine the following delisting reasons: poor profitability and operational ability,and insufficient company growth ability.The impact of U9 Game’s delisting is discussed from the perspectives of the company,investors,and capital market.According to the research in this article,we can draw the following insights and recommendations:regulatory authorities should continue to improve the delisting system while enhancing the disclosure mechanism and investor protection mechanism of listed companies.Listed companies should establish a reasonable corporate governance system while paying attention to talent cultivation to improve their core business profitability.Investors need to make rational investments and pay attention to the internal governance of companies.Finally,here are some development suggestions for U9 Game after delisting:firstly,seek new opportunities and growth points,secondly,value talent,and thirdly,continue to strengthen internal corporate governance.