Legal analysis: No matter whether it is a listed company or a non-listed company, if it is not well managed, it will eventually become insolvent and will go bankrupt. Listing only provides a bigger and stronger financing channel for listed companies, and whether the company operates well depends on its own ability. When the company's share price falls, its financing ability will be greatly affected. If it is a company that relies on leverage to maintain normal operation, or a company that really encounters difficulties in operation and needs to rely on debt to get out of the predicament, it will be difficult or even impossible to raise enough funds. If it is serious, the company will go bankrupt.
Legal basis: Article 120 of the Company Law of People's Republic of China (PRC) The listed company mentioned in this Law refers to a joint stock limited company whose shares are listed and traded on the stock exchange.