In the past few years, some China stock companies have problems such as financial accounting fraud and corporate governance, which have aroused the vigilance of the regulatory agencies. For example, according to its regulations, the US Securities and Exchange Commission must meet the listing requirements of American stock exchanges, otherwise the company may be forced to withdraw from the market. Joint-stock companies in China need to meet the requirements of financial reporting, governance standards and internal control standards. If they fail to meet these standards, they may be forced to withdraw from the market.
The delisting of China Stock Exchange Company may be a painful experience for investors. Delisted stocks usually face serious stock price decline and liquidity problems. In addition, it is difficult for investors to handle stock trading, and they cannot sell or buy these stocks through the stock exchange. On the contrary, delisting companies may choose to go back to China to list in China. Delisting also has a great impact on the company's reputation and goodwill, which is not conducive to the company's development and growth. Therefore, China Stock Exchange needs to strengthen its financial management and governance structure to avoid delisting due to problems.