This article is from WeChat public account:China Securities Journal (ID:xhszzb) , author: Zhou days, Dong Tian, the original title: “suspicion of the crime of bid-rigging, but the head of a public company was caught! Yao Ming was ranked among the top ten shareholders. The title map is from: Oriental IC
In 2019, the Chinese capital market staged a scene of “prison situation” in which A-share listed companies were actually controlled.
According to the incomplete statistics of China Securities Journal reporters, as of November 13, 2019, at least 16 real-time controllers and chairman of the listed companies were subject to compulsory measures for criminal offences. From the reason, it is mainly suspected of false invoicing, illegal disclosure, suspected bribery, suspected triad crimes, etc.
After the relevant company “bombing”, the stock price also showed significant pressure. For listed companies, in addition to the stock price suffered a setback, the arrest of the actual controller will undoubtedly have a certain negative impact on the company’s image and future business expectations.
On the evening of November 12, Fengyu Building announced that the company received the Notice of Detention of Shunyi Branch of Beijing Public Security Bureau on November 12, 2019, and the company’s actual controller and chairman and general manager Li Hui Due to the alleged collusion of bidding on November 12, 2019, the Beijing Public Security Bureau Shunyi Branch was in criminal detention. The relevant matters are still pending in the public security organs.Step investigation. The company will actively cooperate with the relevant investigations of the public security organs. At present, the company’s daily operations are normal, the company’s management is stable, and the company’s board of directors and management will ensure that the company and its various business activities are carried out normally.
It is worth noting that the company’s prospectus shows that before the listing, Yao Ming held 650,000 shares of the company, accounting for 0.60% of the company’s total share capital, ranking the sixth largest shareholder. However, in the three quarterly reports released this year, Yao Ming is no longer among the top ten shareholders.
On the same day, the company passed the election of the board of directors and agreed that during the investigation of Li Hui, the director of the company, Xin Haoying, fulfilled the duties of chairman, general manager and legal representative.
Great impact on stock price
From the stock price reaction of the listed companies, the stock prices have fallen sharply after the “heads” of most companies. Taking *ST Zhongke as an example, Zhang Wei, the actual controller of the company, was arrested by Shenzhen Public Security for black-related, and the stock price fell continuously for one word.
On the afternoon of April 10, Weibo “Shenzhen Public Security” issued a report saying: Recently, the bureau broke the Shenzhen Zhongke Chuang Financial Holdings Group Co., Ltd. Zhang Wei (male, 46 years old) headed by a black criminal group. According to the report, the above-mentioned persons involved in the crimes include organizing, leading, participating in crimes of the underworld nature, crimes of illegal detention, crimes of extortion, extortion, false litigation, fraud, illegal possession of firearms and ammunition.
In addition to being a Chinese financial controller, in the capital market, Zhang Wei also has an identity, that is, the actual control of the A-share listed company *ST Zhongke.
After this news, the company’s share price fluctuated sharply, and the stock price fell by half in just one month.
Expert opinion: Equity structure should not be over-concentrated Should be more public
Fu Lichun, financial academic committee member of the China Market Association and research director of Northeast Securities, told the China Securities Journal that the real controllers and chairman of the listed company had a great influence on the company’s creation, development, listing, operation and governance.
Fu Lichun believes that these important people have a major impact on many aspects of the company because of the criminal cases that lead to changes in the actual controller or chairman of the listed company. Since the real controller and the chairman are not only representing individuals, but more representative of the company’s image, these listed companies will inevitably have to endure some adverse effects and impacts.
It is worth noting that the chairman and actual controller of a listed company are involved in criminal cases, but only a concentrated outbreak of potential problems. Therefore, investors’ evaluation of listed companies cannot be generalized. They believe that there is no problem before the problem is exposed, and there is no prospect after exposure. Before the listed companies broke out, these listed companies also had hidden dangers in information disclosure and internal governance. For example, excessive equity concentration and so on, investors need to make a reasonable assessment.
Fu Lichun said that in the modern company, the separation of equity and management rights is the general trend. The shareholding structure should not be over-concentrated and should be more public.
In addition, the management of listed companies should be more professional. The internal control of the company in the early stage can weaken the impact of the criminal case on the listed company itself by the chairman and the actual controller.
Evenly, in the event of such a criminal event, the listed company’s stock price usually fluctuates greatly, which is a short-term impact. The far-reaching impact is that the company’s brand image will be damaged, and the brand image is an intangible asset accumulated by listed companies for many years.
For the aftermath of compensation, Fu Lichun said that once the criminal case of the chairman and the actual controller is exposed, it will involve crisis public relations issues for listed companies. This requires listed companies to establish a very adequate communication mechanism for investors, regulators and the entire public. Share and disclose existing problems and related information smoothly, promptly and effectively, to avoid inadequate information disclosure or information asymmetry. Reinventing the brand image,