Rescarch on Perfecting the Forced Delisting System of List Companies

Abstract

The forced delisting system, functioning as a mechanism for the "export" of listed companies, is pivotal in fostering market dynamism and optimizing resource allocation within the securities market byenforcing the principle of survival of the fittest. which is directly related to whether China's securities market can realize the orderly and timely clearing pattern. However, there are still difficult and slow delisting problems in China's securities market. The fundamental obstacle is that the standard of forced delisting is generally loose, the forced delisting procedure is lengthy and the connection is not smooth. Drawingon the experience of developed capital markets outside the region, it is suggested that in terms of entity system, the number of market makers should be increased to fully reflect the will of investors, and forced delisting standards for trading should be strictly formulated to strengthen market standardization, while the weight of financial profit standards in delisting standards should be reduced, and the scope of application of non-quantitative standards should be expanded to comprehensively combat delisting evasion. In terms of procedures and systems, shorten or directly cancel the consolidation period to speed up the delisting speed; At the same time, improve the transition rules after forced delisting to ensure the smooth transition of the company to be delisted.