Research and Analysis of Connected Transactions and Firms' Listing Denials

Abstract

Abstract: In recent years, IPO declarations of proposed listed companies in China's A-share market have been rejected more and more frequently due to the issue of connected transactions, which has aroused concerns. The purpose of this paper is to explore in depth the reasons for the rejection of the A-share listing of proposed listed companies and to propose countermeasures to solve the problem of abnormal connected transactions. This article first defines the scope of connected transactions and their problems, analyzes some cases of proposed listed companies being rejected due to connected transactions in recent years, and deeply explores the problems of hidden connected relationships, connected transaction fraud, and connected transaction de-connectedness, etc., and demonstrates the specific manifestations and impacts of these problems through example analysis. Given the findings, the article puts forward a series of recommendations and insights, including maintaining the operational independence of enterprises, improving the sustainable profitability of enterprises, and tightly controlling the truthfulness of corporate information disclosure. These suggestions aim to help enterprises avoid the problems of connected transactions, enhance the success rate of IPO, and promote the healthy development of the capital market.