Recently, the CSRC issued the Guiding Opinions on Improving the Suspension and Resumption System of Listed Companies' Stocks (hereinafter referred to as the "New Rules for Suspension and Resumption"). It can be said that the introduction of the new rules on suspension and resumption of trading is not only to regulate the suspension and resumption of trading of listed companies, but also a major measure launched by the regulatory authorities to improve the basic system of the capital market, optimize transaction supervision, reduce transaction resistance and enhance market liquidity.
The new rules on suspension and resumption of trading mainly include the principle of suspension and resumption of trading of listed companies' shares, the period of suspension, information disclosure and the construction of supporting systems. Compared with the previous relevant systems, the new rules for suspension and resumption of trading appear more stringent and more operational. Among them, if the shares of listed companies do not resume trading after the prescribed time limit, the provisions that the stock exchange should force the resumption of trading are undoubtedly a major concern.
The suspension of listed companies mainly has two basic functions: ensuring fair credit and reminding of major risks. However, in the A-share market, it has given rise to many additional functions, such as preventing insider trading, locking up the price for restructuring and even avoiding special market conditions. For example, in 2015, the stock market experienced abnormal fluctuations, and the Shanghai and Shenzhen stock markets had a "grand occasion" of suspending thousands of shares. In recent years, the market has been depressed, and many major shareholders or actual controllers of listed companies have suffered from the pressure of breaking positions in pledged shares. Listed companies often avoid the risks by suspending trading. Because of this, "de functionalization" has become the top priority of the reform of the suspension system.
On the issue of trading suspension, the frequent "stop at will", "stop at will", "stop for a long time" and other phenomena of listed companies will not only deprive investors of the right to know and the right to trade, but also increase the trading resistance and weaken the market liquidity. Moreover, when the suspension and resumption of trading are played by listed companies, it will damage the interests of investors and also compensate for the credit of the capital market. In fact, we paid a price for the suspension. Since 2013, A-share has entered MSCI for four consecutive times, and was not included until the fourth time. The important reason is related to the suspension of listed companies.
With the continuous introduction of measures by the regulatory authorities to regulate the suspension and resumption of trading of listed companies, the problem of more and longer suspension of listed companies has improved in recent years. Take Shanghai Stock Exchange as an example. In recent years, the number of stock suspensions of listed companies in Shanghai Stock Exchange has decreased year by year, 1254 in 2015, 733 in 2016, 601 in 2017, and 323 from the beginning of 2018 to July 31. The achievement of these achievements is obviously inseparable from the regulatory authorities' strengthening the supervision of suspension and resumption of trading of listed companies.
Even so, there should be no relaxation in the supervision of suspension and resumption of trading of listed companies. After all, there are still many listed companies on the market that have been suspended for a long time, and some have even become "nail households". For example, as of November 6, 28 listed companies in Shanghai and Shenzhen stock markets have been suspended for more than 50 trading days, including Xinwei Group Trading has been suspended for 454 consecutive trading days, the share price of Shagang is 519 trading days, and Shenfang is 520 trading days, *ST Xinyi The suspension time exceeded three years, reaching 712 trading days. The existence of these suspended "nail households" has a bad impact on the market and must be removed.
This time, the regulatory authorities issued new rules for suspension and resumption of trading. Although they are called "the strictest in history", the loopholes still exist. For example, according to the regulations, if a listed company really needs to suspend trading for a long time, it should follow the procedures stipulated by the stock exchange. This provision also objectively leaves room for the willful suspension and long-term suspension of listed companies. The phenomenon of "nail households" in the suspension of listed companies is also closely related to the defects in the previous rules and regulations.
Although the suspension of listed companies is to ensure fair credit and prompt major risks, the phenomenon of "arbitrary suspension", "arbitrary suspension" and "long-term suspension" can be eliminated, with the focus on information disclosure. In fact, even if it is to plan major events such as asset restructuring, it is not necessary to suspend trading for a long time. In the asset restructuring launched during Vanke's equity battle that year, there was a scene of A-share suspension and continued trading of Hong Kong shares. This year, Nanfeng Chemical and Colin Environmental Protection For major asset restructuring, the suspension time is only 10 trading days. This shows that even for major events such as asset restructuring, long-term trading suspension is not "necessary".
Therefore, after the issuance of the new regulations on suspension and resumption of trading, it is necessary for the regulatory authorities to set a time limit for suspension of trading of "nail households" and listed companies whose suspension time exceeds 3 months. Once the time limit expires, the trading will be resumed compulsorily. In this way, the new rules for suspension and resumption of trading can produce real results.
(About the author of this article: Independent financial writers have published hundreds of articles in three major securities newspapers and other media)
