Article/Cao Zhongming, columnist of Sina Financial Opinion Leader Column (WeChat official account kopleader)
Up to now, listed companies with performance losses, mergers and acquisitions, fraudulent issuance, major information disclosure violations, "five security issues", and delisting due to stock prices below par value have continued to appear. Even so, after the new delisting regulations were issued, the weaknesses of the current delisting mechanism are still very obvious.
After the CSRC issued the Decision on Amending the Several Opinions on Reforming, Improving and Strictly Implementing the Delisting System of Listed Companies, and on the basis of extensive solicitation of opinions, Shanghai and Shenzhen Stock Exchanges issued the Implementation Measures for the Compulsory Delisting of Listed Companies in Case of Major Illegality, revised and improved the Stock Listing Rules Measures for the Implementation of Delisted Companies' Re listing. The focus of the new delisting regulations is to improve the delisting, resumption and relisting systems of major illegal companies.
For a long time, A-share market has the problem of low delisting efficiency. On the one hand, the number of delisted companies is relatively low. At present, there are more than 3000 listed companies in Shanghai and Shenzhen stock markets, but since the birth of A-share, there have been less than 100 delisted companies. Moreover, the delisting of many companies is mainly due to mergers and acquisitions, and such companies account for a large proportion of delisted companies. On the other hand, the delisting of A-share companies has many problems, such as long delay, complicated procedures, etc. It is both a risk warning and a delisting arrangement, which is messy and lengthy. In the new delisting regulations, the time limit for delisting companies to suspend listing has been shortened from 12 months to 6 months, which has been greatly shortened.
Moreover, the delisting of major illegal companies no longer has the problem of resuming listing. Companies that issue fraudulently will no longer have the opportunity to relist. After delisting of other major illegal companies, they must apply for relisting after the share conversion system has completed 5 accounting years. All these can not only significantly improve the delisting efficiency, but also make it more difficult for major illegal companies to relist in the future. Therefore, the severity of the new delisting regulations issued this time is far beyond the imagination of the market, and also highlights the concept of comprehensive and strict supervision according to law.
With the Shanghai and Shenzhen Stock Exchanges issuing the Implementation Measures for the Compulsory Delisting of Listed Companies for Major Violations, the delisting of major illegal companies will be more practical. If the fraudulent issuance covers initial listing and reorganization listing, major information disclosure violations will include fraud in annual reports to avoid delisting, and in addition, there are other conditions identified by the Exchange. If a listed company's major violations involve national security, public security, ecological security, production safety and public health and safety, it may also be delisted. The further expansion of the "extension" of major illegal acts of listed companies is obviously more conducive to restricting the behaviors of listed companies, and can play a warning role in the market.
However, the major illegal acts of listed companies are obviously not limited to fraudulent issuance, major information disclosure violations and the "five security". Whether a listed company will delist depends on whether it has a legal basis. Such acts as fraudulent issuance, because they violate the provisions of the Securities Law on information disclosure, and seriously endanger the market order, seriously infringe on the interests of investors, and will cause adverse effects. Such listed companies, obviously, do not have a legal basis, so they should cancel their listing status and sweep them out of the market.
In the A-share market, there are many listed companies that have seriously damaged the interests of investors. The behavior of such companies does not involve fraudulent issuance and major information disclosure violations, nor does it involve the "five security issues", but it has seriously damaged the interests of its investors, such as the 1001 odd proposals that were put forward that year ST Huiqiu That's it. What the listed company did at that time was also a "major illegal act", which not only led to the punishment of the CSRC, but also led to a sharp decline in the share price, which seriously damaged the interests of investors. Listed companies like this should also be delisted.
After the release of the new delisting regulations, Shenzhen Stock Exchange has launched the *ST Changsheng The major illegal compulsory delisting procedure also means that the reasons for delisting of listed companies are further diversified. Up to now, listed companies with performance losses, mergers and acquisitions, fraudulent issuance, major information disclosure violations, "five security issues", and delisting due to stock prices below par value have continued to appear. Even so, after the new delisting regulations were issued, the weaknesses of the current delisting mechanism are still very obvious.
For example, in the A-share market, there are still a large number of listed companies with serious financial distress, long-term losses, or zombie enterprises. The existence of these "immortal birds" in the stock market has led to the frequent occurrence of the phenomenon of "bad money expelling good money" in the market, and the function of optimizing resource allocation in the securities market has been seriously distorted. These "immortal birds" of the stock market are undoubtedly the objects of compulsory delisting. However, under the current delisting mechanism, it is impossible to force the "immortal bird" of the stock market to delist, and the delisting system needs to be further reformed. The author believes that the normalization of delisting of listed companies can be realized only by deepening reform and eliminating all the "immortal birds" in the stock market.
(About the author of this article: Independent financial writers have published hundreds of articles in three major securities newspapers and other media)
