Author(s)

Hangying Zou

Management School, Jinan University, Guangzhou, China.

To safeguard the legitimate rights and interests of medium and small investors is the basic premise of the stable development of the capital market, and is a powerful driving force to promote the improvement of capital market. However, with the rapid development of China’s capital market, a series of major financial fraud cases of listed companies have occurred in succession. These events not only cause great negative impact on our country immature capital market, but also bring serious damage to the interests of medium and small investors. This paper takes the Kang Zhi pharmaceutical financial fraud case as an example, analyzing the root of the financial fraud and its impact on the interests of medium and small investors. Also, in order to improve the mechanism of corporate governance supervision, to improve the quality of intermediary, and to strengthen management of the capital market legal system, some suggestions are given.

Kang Zhi Pharmaceutical, Financial Fraud, Medium and Small Investors, Protection of Interests

Zou, H. (2016) Medium and Small Investors Interest Protection: Why Am I the One Who Always Gets Hurt?—Case Study of Kang Zhi Pharmaceutical. Open Journal of Business and Management, 4, 483-488. doi: 10.4236/ojbm.2016.43050.