Legal analysis: bankruptcy liquidation is the first step for listed companies to go bankrupt. Liquidation of assets generally requires payment of liquidation expenses, state taxes, employee salaries, etc. Only consider the interests of shareholders. Generally, bankrupt companies are insolvent and few assets are distributed to shareholders.

The order of settlement in bankruptcy liquidation is: first the bankruptcy expenses of the enterprise, then the wages owed by the enterprise, then the taxes owed by the state, and then the general creditor's rights are paid off. If the bankruptcy property is insufficient to pay off the debts in the first order, the creditor's rights in the latter order cannot be paid off. If it is not enough to pay off the debts in the same order, it shall be paid off in proportion to the creditor's rights. Common shareholders are the last to pay off.

Legal basis: Enterprise Bankruptcy Law of the People's Republic of China

Article 7

The debtor may apply to the people's court for reorganization, reconciliation or bankruptcy liquidation under the circumstances specified in Article 2 of this Law.

If the debtor is unable to pay off the debts due, the creditor may apply to the people's court for reorganization or bankruptcy liquidation of the debtor.

If an enterprise as a legal person has been dissolved but has not been liquidated or its assets are insufficient to pay off its debts, the person liable for liquidation according to law shall apply to the people's court for bankruptcy liquidation.