Hit hard! The chaos in A-share market has been speeded up and illegal companies have traces to follow

Stock speculation depends Jin Qilin analyst research report , authoritative, professional, timely and comprehensive, to help you tap potential theme opportunities!

This past weekend, Zhengwei New Material Wang Wenyin, its actual controller, was put on file for investigation by the CSRC because of the suspected illegal information disclosure. This is the epitome of the strict supervision and control of the recent capital market.

According to Wind data, since April 12, 156 companies have announced 251 cases of violations, and the punishment agency is the stock exchange or CSRC and other securities regulatory departments. From the perspective of punishment type, issuance of warning letters accounted for the highest proportion, with 95 cases, accounting for nearly 40%; The second is to order rectification, accounting for 36%; 30 cases were investigated, accounting for 2%. In addition, it also includes public punishment, regulatory attention and other types.

On the whole, the strict supervision of listed companies has been further strengthened since the release of the new "National Nine Rules". Wang Jiyue, a senior investment banker, believes that the biggest impact of strict regulation on the market is to deter listed companies, not to focus on illegal loopholes, and to develop the main business of the company is the right way. For the capital market, strict supervision and accelerated clearing up of chaos are conducive to the restoration of market ecology and avoid the situation of "bad money drives out good money".

Acceleration of illegal investigation and punishment of listed companies

Improving the quality of listed companies is the key word for the stable development of the current capital market, and strict supervision is an important way to improve the quality of listed companies.

Since the release of the new "National Ninth Article" of the State Council, the strict supervision of the capital market has continued. Many listed companies have been investigated or given risk warnings (ST or * ST), and the regulators have intensively issued tickets to punish illegal companies.

From the distribution of reasons for violations of listed companies, corporate operation and governance violations are the main reasons, accounting for nearly half of the total. The second is the disclosure violation of specific major events, accounting for nearly 40%. Violations of regular report disclosure and performance forecast express report account for nearly 10% in total. Other types of violations include related party transaction violations, financial violations, short-term transaction violations, etc. The new "National Ninth Article" emphasizes that urging listed companies to improve their internal control system, and the recent intensive investigation and punishment of corporate operation and governance violations are important manifestations of the implementation of the new "National Ninth Article".

After the release of the new "National Ninth Article", the strict supervision of listed companies mainly has the following changes:

First, the number of illegal companies investigated and dealt with increased significantly. Since the release of the new "National Ninth Article" on April 12 this year, there have been 251 cases of violations (the subject of violations is the company), an increase of 60 cases over the same period last year. The investigation and punishment of violations became more intensive, with 24 cases on May 10 alone.

Second, the punishment for violation of regulations is stricter. The types of regulatory penalties include "regulatory concerns, issuance of warning letters, notification of criticism, and case filing and investigation". Among them, "regulatory attention" is a relatively light punishment. Usually, the regulatory authorities send regulatory work letters to listed companies to clarify suspected violations and serve as a reminder and warning. In 2023, the type of punishment will be "regulatory concern" cases, accounting for nearly 40%. Since the release of the new "National Ninth Article", there have been only 5 cases of listed companies with "regulatory concerns" as their punishment type, accounting for less than 2%. The number of companies registered for investigation has increased to 28, and the number of companies registered for investigation in more than 40 days is close to 40% of the number of companies registered for investigation in 2023 (77).

Third, the investigation time is faster. In the process of case handling after case filing and investigation, the main tone is strict and fast. After the release of the new "National Nine Rules", the speed of investigation from case filing to investigation was extremely fast. Illegal facts up to 7 years *ST Xinfang (Rights protection) The interval between the investigation and the issuance of the Notice of Administrative Punishment in Advance is only about one month, Dingxin Communication (Rights protection) The investigation time is about one month, and citic securities about Medium nuclear titanium dioxide (Rights protection) The investigation of the case took only one week.

Illegal companies have traces to follow

After the new "National Ninth Article", what are the common characteristics of companies that violate the regulations? Which kind of company has a high risk of violation of regulations, which needs to be avoided in the investment process.

We combed the industry, performance and credit characteristics of the companies that violated the regulations, and found that these companies still have traces to follow:

First, securities firms collect tickets intensively. After the implementation of the new "National Ninth Rule", from the perspective of the industrial distribution of companies that violate the rules, securities firms and institutions are clustered, 20 companies have received warning letters or administrative supervision notices from the regulatory authorities, and the "gatekeepers" of the capital market have been collecting tickets intensively. There are also three securities companies that have been investigated due to violations, namely Haitong Securities , CITIC Securities Soochow Securities The common point is the fixed increase project. From the content of violations by various securities firms, investment banking, brokerage, asset management and proprietary business and other main business areas are involved.

Strengthening the supervision of securities firms is an important embodiment of the implementation of the new "National Nine Rules". The new "National Ninth Article" requires further compaction of the issuer's primary responsibility and the intermediary's "gatekeeper" responsibility, and the establishment of the intermediary's "blacklist" system.

Second, ST companies cluster together. Among the companies that have recently violated the rules, 41 companies have implemented risk warnings (including * ST or ST), of which more than 10 have implemented risk warnings (including * ST or ST) before the new "National Ninth Article". In addition, more than 10 other companies have a history of "wearing stars and hats" for many times. for example Zoran Technology (Rights protection) Since its listing, it has been "starred and capped" twice, and the latest risk warning will be lifted in 2022, which is changed from * ST Songjiang to Tianjin Songjiang for short. The CSRC launched a case investigation on it on March 15. China Science Cloud Network Since its listing, it has also been "wearing hats and stars" twice, and there have been many violations. From 2014 to 2019, there have been violations every year. On May 9, 2024, the regulatory authority will issue a warning letter to him and record it in the integrity file of the securities and futures market. In addition, it also includes Zhidu Shares 、 Mount Everest, Tibet 、 Tongce Medical (Rights protection) Etc. With the new "National Nine Rules" clearly weakening the value of shell resources, ST companies have become a disaster area with high incidence of violations.

Third, the credit rating is low. Information disclosure is an important basis for the stable development of the capital market. It plays an important role in ensuring the fairness, transparency and stability of the market. The quality of credit rating work of listed companies reflects their corporate governance level, and the credit rating quality of illegal companies is not high as a whole. Shanghai and Shenzhen Stock Exchanges regularly rate the credit rating of listed companies, which is generally divided into four grades from high to low: A, B, C and D. Since the release of the new "National Nine Rules", there have been 73 companies with credit rating of C and D, accounting for nearly half of the total, and all A-shares accounted for more than 30 percentage points higher. According to all A-share credit rating data, the proportion of those rated C and D is less than 20%, which shows that the quality of credit rating work of companies in violation of regulations is not high as a whole.

Fourth, the fundamentals are poor. The market value of illegal companies is low, with nearly 100 companies having a market value of less than 5 billion yuan, accounting for more than one-third. At the same time, the internal management of illegal companies is not standardized enough, and more than 60 companies' internal control audit opinions are "negative or unable to express opinions". In April this year, the newly revised delisting rules of the Exchange specified the requirements for internal control, and proposed to include companies whose internal control over financial reports has been denied or unable to express opinions for two consecutive years into the delisting risk warning scope.

In addition, from the perspective of performance, more than 150 companies that violate the regulations are also not optimistic. More than 40% of companies will lose money in 2023 and the first quarter of 2024.

Punch Quest

The violation of listed companies brings greater risks to the companies. Especially after the release of the new delisting regulations this year, the listed companies in violation of laws and regulations have been hit hard, and the requirements on the normative delisting have been added. Serious violations of laws and regulations may directly lead to delisting of listed companies.

Specifically, the adverse effects of listed companies' violations on the company are mainly as follows:

First, implement risk warning (ST or * ST). Since the release of the new "National Ninth Article", many companies have been given risk warnings (ST or * ST) due to violations. Wind data shows that as of May 20, 94 listed companies have been given risk warnings (including * ST or ST) since the release of the new "National Nine Rules", approaching the number of 95 in 2023. In addition to the common financial nonconformities and non-standard opinions in the annual report audit, the reasons also include false records, illegal occupation of funds, non-standard internal control audit opinions and other violations.

Specifically, five companies were subject to ST due to major information disclosure violations, including those highly concerned by the market ST Zhongtai (Rights protection) Etc. On the evening of May 19, Zhongtai Chemical announced that the company had received the Administrative Punishment Decision issued by Xinjiang Securities Regulatory Bureau, which identified that the company would falsely increase its income by 4.248 billion yuan in 2022, and the controlling shareholders' funds would occupy 7.718 billion yuan. The company's stock abbreviation was changed to "ST Zhongtai". In addition, other companies such as Straits Innovation, Huijin Shares and Tefa Information have successively issued announcements, so there are false records in the previous annual report, the company has been subject to regulatory measures or administrative penalties by the local securities regulatory bureau, and the company's shares have been subject to ST. At the end of April, the Exchange issued new and latest rules, adding other risk warning system (ST) indicators applicable to financial fraud. The false records of the above companies were "blindsided" because they touched the new rules.

In addition, illegal occupation of funds is also an important reason for the implementation of ST. There are 4 companies that are subject to ST because of illegal occupation of funds. as ST Changkang (Rights protection) The controlled shareholders and their related parties' non operating occupation of funds, the company's annual report audit opinion and internal control audit opinion are non-standard, and the company is subject to ST implementation. ST Sunshine (Rights protection) The controlled shareholders and their related parties occupy funds for non operating purposes and are subject to ST.

After the release of the new "National Ninth Article", the illegal fund occupation was highly concerned by the regulators. On the evening of May 9 ST Modern (Rights protection) 、 ST Red Sun 9 ST companies have disclosed in succession and received the announcement of the decision to order corrective measures. The 9 companies were occupied by the controlling shareholders for non operational purposes with large amounts of funds, and the CSRC required them to clear up the funds within six months. According to the new regulations, if the company fails to correct within the specified time, it may face greater delisting risks.

In addition, another 17 companies were ST implemented due to non-standard internal control audit opinions.

Second, file a case for investigation. Case filing investigation is the most serious punishment for listed companies' violations. Since the new "National Ninth Article", the number of cases filed for investigation has increased rapidly, with 28 companies being filed for investigation (the subject of case filing is companies, excluding individual cases). From the case filing reason, the most common reason is suspected of illegal information disclosure. In addition, the annual report is not disclosed at the specified time.

After the listed company is investigated, there is a major delisting risk. The new "National Ninth Article" requires "strengthening the implementation of standardized delisting". According to the latest regulations of the Shanghai and Shenzhen Stock Exchanges, three types of standardized delisting situations have been added.

After the listed company has been filed for investigation, it is necessary to wait for the determination result of the CSRC's administrative punishment to see if it has touched the situation of major illegal compulsory delisting. It is worth noting that the number of cases involving major illegal compulsory delisting indicators is increasing. After * ST Xinhai became the first major illegal compulsory delisting case in 2024, * ST Poten was also forced to delist due to major illegal issues. According to the public data, * ST Poten had the problems of long false records, large amount and high proportion, involving major illegal forced delisting, and the company terminated its listing on April 19.

Compulsory delisting for major violations is like a heavy blow to companies with violations. After the listed company issued the announcement of investigation, the company's share price was under great pressure. For example, after the announcement on March 15 was investigated and filed, the share price of Dron Technology fell by the limit on that day, and has continued to decline since then, with the share price falling by about one-third so far. Shengtun Mining (Rights protection) Since the announcement of investigation, the share price has dropped by more than 20%.

In addition, listed companies may face collective claims from investors after filing for investigation. For example, in the case of Zeda Yisheng's fraudulent offering, CSI Small and Medium Investors Service Center Co., Ltd., on behalf of 7195 qualified investors, received full compensation of more than 280 million yuan. This case is the first case involving the special representative of a listed company on the science and technology innovation board in China, and also the first case involving the settlement of a class action lawsuit of Chinese securities. In addition, Kangmei Pharmaceutical compensated securities investors with losses of 2.459 billion yuan due to false statements such as annual reports.

In addition to the implementation of ST and case investigation, fines are a common form of punishment for listed companies with violations. Since the new "National Ninth Article", many companies and individuals have been fined by regulators. On May 15, the punishment for the illegal arbitrage case of fixed increase of CNNC Titanium White came to an end. The actual controller of CNNC Titanium White, Wang Zelong and his friend Hong Haowei, the former director secretary of CNNC Titanium White, Han Yuchen, CITIC Securities, Haitong Securities and CITIC Securities were fined and confiscated a total of 235 million yuan.

When the stock market recovers, open an account first! Intelligent fixed investment, condition sheet, individual stock radar... for you>>

Sina statement: This message is reproduced from Sina's cooperative media. The purpose of posting this article on Sina.com is to convey more information, and does not mean to agree with its views or confirm its description. The content of this article is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.