The Economic Consequences of The Sale of Intco Medical's Major Shareholders

Abstract

Since the implementation of the reform of non-tradable shares, the scale of major shareholders' reduction has been continuously expanding. The emergence of the COVID-19 pandemic in 2020 has exacerbated the problem. Taking Intco Medical Company as an example, this paper reviews the whole process of the holding reduction event from the actual situation of its controlling major shareholder through the event study method, analyzes the economic consequences brought by the major shareholder's holding reduction, and puts forward the corresponding management method suggestions as understood by the author, in order to provide theoretical support for the relevant personnel to carry out research in the later stage.