Government Intervention in the Reorganisation of Listed Companies in China

Discusses the nature, extent and appropriateness of government intervention in the bankruptcy of listed companies in China.

Huimiao Zhao (Author)

9781108721806, Cambridge University Press

Paperback / softback, published 29 September 2022

350 pages
22.8 x 15.1 x 1.8 cm, 0.51 kg

'The roles that the Chinese Government plays in the reorganisation of listed companies under the Enterprise Bankruptcy Law (EBL) is a fascinating topic with great practical significance. Scholars have commented on it, but this is the first sustained and in-depth study using a combination of doctrinal research, historical research, empirical research and case studies. This comprehensive coverage enables readers to have a holistic, nuanced and evidence-based understanding of the operation of the EBL in practice and in particular, the reorganisation of listed companies. Lucidly written and cogently argued, Professor Zhao should be commended for making a weighty contribution to the developing scholarship on the EBL.' Wee Meng Seng, Deputy Chairman, Director of Corporate Law, National University of Singapore

As a comprehensive empirical study on the bankruptcy re-organisations of listed companies in China, this book examines the re-organisation of fifty-three listed companies entering bankruptcy between 2007 and 2018. It features raw data from thousands of public announcements of listed companies, helping to present a precise panorama of bankruptcy law in China. The author discusses the nature, extent and appropriateness of government intervention in bankruptcies of listed companies. It also examines the effects of bankruptcy institutions established by the bankruptcy laws to constrain government intervention. The findings suggest that such laws have been inadequate to prevent government intervention. In fact, the biggest obstacle to the smooth implementation of China's reorganisation system is government intervention, one distinct characteristic of the socialist market economy. The book will have broader relevance in terms of informing the debate concerning the government's continuing intervention in economic activity in China.

1. Introduction to the research
2. The legislative goals of the enterprise bankruptcy law of the PRC
3. The role of the government in the 1986 and 2006 EBLs
4. Administrative goals and means of government intervention
5. Negative impacts exerted by government intervention on bankruptcy institutions
6. Balancing the roles of different institutions for the future reform of China's bankruptcy market
Conclusion
Appendices.

Subject Areas: Corporate finance [KFFH], Finance [KFF], Economics, finance, business & management [K]