Since this year, the “compulsory delisting” of the basic layer of the new third board has continued the momentum of 2021, and some companies with difficulties in operation, poor corporate governance and non-standard information disclosure have been continuously cleaned up. According to statistics, in January and February this year, 26 and 24 companies listed at the basic level were delisted respectively, of which 11 companies were forcibly delisted by the regulators.
Many industry experts believe that the continuous promotion of the “compulsory delisting” of the new third board will form a benign market ecology in which enterprises can advance and retreat, and the investment risk is matched with the appropriateness of investors.
foundation layer “compulsory delisting” continues
Since September 2021, more and more basic tier companies of the new third board have received compulsory delisting notices from national share transfer companies.
The reporter of Shanghai Securities News found that many listed companies were required to enter the delisting consolidation period because they triggered the provisions of compulsory delisting, and the front end of their securities abbreviation was crowned with words such as “delisting” and “ST”.
According to the information statistics of Shanghai Securities News, in January and February this year, 26 and 24 companies listed at the basic level were delisted respectively, of which 11 companies were forcibly delisted by the regulators, accounting for 42% and 46% respectively. In 2021, the total number of delisting in January was 159, of which 50 were compulsory delisting, accounting for 31%; Of the 72 companies delisted in February, none was forced to delist.
Combing the context of “compulsory delisting”, it can be seen that the proportion of compulsory delisting on the new third board from January to August 2021 is low. Except that it is more than 30% in January, 15% and 14% in March and August, the proportion of compulsory delisting companies in other months is less than 2%, and there is not even one in some months. In September 2021, the Beijing Stock Exchange announced its establishment, and the proportion of compulsory delisting in that month soared to 40%. In November, when the Beijing Stock Exchange opened, it was as high as 90%. In December, the momentum of November continued, and the proportion of compulsory delisting companies was as high as 60%.
From the perspective of trading mode, the vast majority of the 367 basic tier companies that were forcibly delisted from 2021 to February this year adopted the call auction trading mode. There are few companies that adopt the way of market making transactions, only 16, accounting for less than 5%.
problem companies are cleared out
Behind the continued “compulsory delisting” of the basic level is the “exit” of companies with operating difficulties, poor corporate governance, non-standard information disclosure, disciplinary sanctions and litigation.
It can be seen from the public information that most of the listed companies at the basic level have been forcibly delisted because they have not disclosed their annual reports within the specified time, and some listed companies have not even disclosed their 2019 semi annual report and 2018 annual report.
LOHAS world, a listed company, issued the risk warning announcement that the listing of the company’s shares may be terminated on February 28. The announcement said that the company did not disclose the 2018 annual report, 2019 semi annual report, 2019 annual report, 2020 semi annual report, 2020 semi annual report and 2021 semi annual report within the legal period, and there was a risk that the listing of the company’s shares would be terminated. LOHAS world filed an application for active delisting in 2021, which was rejected by the regulators because it did not improve the protective measures for dissenting shareholders. Meanwhile, due to the non disclosure of major litigation and the non disclosure of financial statements again, the company and relevant responsible subjects were subject to disciplinary sanctions.
Another reason for being forced to delist is that some listed companies have not paid the continuous supervision fees of the host securities companies for many years. At the end of 2020, the national stock transfer company issued new regulations on the continuous supervision of the host securities companies on the new third board. For listed companies that fail to pay the continuous supervision fee on time, the host securities companies can unilaterally terminate the agreement. Since then, a number of sponsoring securities companies have unilaterally terminated the continuous supervision agreement with the enterprise.
On April 19, 2017 and April 12, 2019, Bolian shares signed the agreement on recommendation and continuous supervision and the supplementary agreement to the agreement on recommendation and continuous supervision with Guosheng securities respectively, and made clear agreements on the amount and payment time of continuous supervision fees. However, the company failed to pay supervision fees as agreed in the agreement for four consecutive years from 2017 to 2020, On August 11, 2021, it received the notice on unilateral termination of continuous supervision agreement issued by Guosheng securities. Finally, the continuous supervision agreement signed between Guosheng securities and Bolian shares will be terminated from November 30, 2021. According to Article 48 of the guidelines for the continuous supervision of the sponsoring securities companies of the National SME share transfer system, if the sponsoring securities companies unilaterally terminate the continuous supervision agreement and there are no other sponsoring securities companies to undertake their continuous supervision, the national stock transfer company shall start the procedures for terminating their stock listing according to relevant regulations, There may be a risk that the listing of the company’s shares may be forcibly terminated.
In addition, some companies have been issued audit reports that cannot express opinions by accounting firms, and have also entered the process of compulsory termination of listing. According to Article 17 of Chapter III of the detailed rules for the implementation of stock delisting of companies listed on the national share transfer system for small and medium-sized enterprises, in case of “the financial reports of the listed company in the last two fiscal years have been issued with negative opinions or audit reports that cannot express opinions by certified public accountants”, the national share transfer company terminates its stock listing.
For example, Dianke, the company’s financial report in 2020 was issued with an audit report that could not express an opinion by the Shanghai accounting firm (special general partnership). On February 8 this year, the company issued the risk warning announcement on the possible termination of stock listing. If the company’s financial report in 2021 was issued with a negative opinion or an audit report that could not express an opinion by a certified public accountant, The trading of the company’s shares will be suspended on the next trading day after the disclosure of the 2021 annual report, and the national stock transfer company will start the procedure of terminating its stock listing.
build a benign ecology of “advancing and retreating”
Industry experts believe that the continuous promotion of the “compulsory delisting” of the new third board is the embodiment of the further improvement of the market mechanism.
Zhu Haibin, chief researcher of the new third board of Anxin securities, said: “the basic layer and innovation layer of the new third board are the ‘reserve camp’ of the Beijing stock exchange. In the future, the supervision of the Beijing stock exchange will converge with that of the Shanghai and Shenzhen Stock Exchange, and the supervision of the basic layer and innovation layer of the new third board will continue to be standardized.” As early as 2016, the national share transfer companies standardized and clarified the listing conditions of the new third board from the perspective of “entry” and strengthened supervision. Now, the delisting system of the new third board has been gradually improved, and a self purification channel has been established for the listed enterprises of the new third board from the perspective of “withdrawal”, so as to eliminate the fittest.
\u3000\u3000 “The supervision mode of the new third board is gradually transitioning from the extensive ‘stocking mode’ pointing to large-scale to the systematic ‘optimization mode’. It tilts from the entrance to scientific and technological innovation enterprises to improve the vitality and quality of listed companies. At the same time, it has zero tolerance for major violations and fraud in terms of exit, and gives the sponsor the right of pre supervision. One step forward and one step back will continuously purify the new third board Board market. ” Zhu Haibin said.
The “compulsory delisting” of the new third board is also conducive to the construction of multi-level capital market.
Shenwan Hongyuan Group Co.Ltd(000166) Liu Jing, chief researcher of the new third board, believes that China’s multi-level capital market has opened up the rising channel with systems such as “layer adjustment”, “public offering” and “board transfer”, and also eliminated the market with mandatory systems such as “delisting”, “layer withdrawal” and “delisting”, so as to improve the quality of the market and form a benign market ecology in which enterprises can advance and retreat and investment risks match the appropriateness of investors, It is conducive to stimulate the innovation vitality and competitive consciousness of enterprises, reduce speculation and irrational investment, and improve the efficiency of market-oriented capital allocation.
