On December 31, the first anniversary of the release of the new delisting regulations. Over the past year, the power of the new delisting regulations has gradually become apparent. A total of 27 listed companies have delisted, including 17 mandatory delisting. In addition, nearly 100 companies have been warned of delisting risk by the exchange. The ecosystem of capital market with in and out and survival of the fittest is gradually taking shape.
Experts interviewed by the Securities Daily believe that the A-share delisting system is constantly improving, and it will take some time for any new regulations to be introduced, implemented, optimized and normalized. With the comprehensive promotion of the registration system reform, in addition to strictly implementing the new delisting regulations, it is also necessary to improve the investor rights and interests protection measures, and further quantify and refine the delisting indicators according to the nature of different industries to make them more targeted.
27 companies quit through diversified channels
According to the reporter of Securities Daily, as of December 30, 17 listed companies had been forcibly delisted during the year (* ST Pengqi and * ST Pengqi B are one company), of which 10 touched the financial delisting index and 7 touched the trading delisting index; 1 delisting; 9 companies restructured and delisted (including 4 companies absorbed and merged, 1 company restructured and listed, and 4 companies cleared asset replacement). Overall, since this year, a total of 27 listed companies have withdrawn from the A-share market.
“Overall, the number of companies forced to delist this year has reached a new high over the years, but the total number of delisting enterprises has not increased significantly. Although some companies have achieved the purpose of avoiding delisting by adjusting financial indicators, some enterprises with poor performance can not avoid delisting for a long time. If they can not improve their performance, delisting will be the final outcome.” Chen Li, chief economist of Chuancai securities and director of the Research Institute, said in an interview with Securities Daily.
“The new delisting regulations will have a deterrent effect on listed companies and help encourage listed companies to adjust their business strategies in time and achieve steady operation. On the whole, the implementation of the new delisting regulations has achieved good results and further purified the capital market environment.” In an interview with Securities Daily, Wang Huiqing, a postdoctoral fellow of the Research Institute, said, “the A-share delisting system is constantly improving. Any system, from design, optimization, improvement to normal operation, needs enough time to explore, and to ensure that the policy is in line with China’s basic situation.”
According to the reporter, many listed companies are on the edge of delisting. Since December, Xin Jiang Ready Health Industry Co.Ltd(600090) , Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) and Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) have issued risk warning announcements that may touch the indicators of major illegal compulsory delisting. The advance notice of administrative punishment and market prohibition received by the three companies shows that the company may touch on major illegal forced delisting.
In addition, Inner Mongolia Pingzhuang Energy Resources Co.Ltd(000780) absorption, merger and delisting are in progress. On December 8, Longyuan Power’s share exchange absorption merger Inner Mongolia Pingzhuang Energy Resources Co.Ltd(000780) was approved by the CSRC. Since December 17, Inner Mongolia Pingzhuang Energy Resources Co.Ltd(000780) has been suspended from trading.
The company announced that after the implementation of the cash option, Inner Mongolia Pingzhuang Energy Resources Co.Ltd(000780) will apply to the Shenzhen stock exchange for termination of listing, and the shares held by the company’s shareholders will be converted into the shares issued by Longyuan Power after share exchange, which will be listed and traded on the Shenzhen Stock Exchange.
100 * ST companies welcome the “big test”
According to the new delisting regulations, companies (* ST companies) that have been subject to delisting risk warning will be delisted if they continue to touch the delisting index in the 2021 annual report.
According to information statistics, as of December 30, there were 104 * ST Companies in a shares. Among them, 96 companies were warned of delisting risks, mostly involving financial delisting indicators. The reporter further combed and found that among the 104 * ST companies mentioned above, 27 companies issued non-standard audit opinions in their 2020 annual reports; The net assets of 20 companies are negative; The operating revenue of 30 companies in 2020 is less than 100 million yuan and the net profit (after deduction) is negative.
“At present, nearly 100 A-share companies have been implemented delisting risk early warning, of which financial early warning accounts for more, which may be related to the decline in demand affected by the epidemic.” Chen Li believes that although the impact of the epidemic may be gradually reduced next year, there is still great uncertainty at the company level. We should be vigilant about the relevant performance of listed companies. If there is no significant improvement, delisting will be inevitable.
In an interview with Securities Daily, Lin Sishan, a strategic analyst, said that from the perspective of the industry, traditional industrial enterprises may be more likely to trigger financial delisting indicators due to operating difficulties due to the downward trend of the industry and the improvement of industrial concentration.
In order to accurately crack down on “shell companies” and clear out “zombie enterprises”, on November 19, in order to implement the new regulations on delisting, the Shanghai and Shenzhen Stock Exchange issued the guidance on deduction of operating income of “financial delisting”, defined the specific deduction items of operating income in financial delisting indicators, and improved the enforceability of financial delisting indicators.
Turning to how to further optimize and improve the delisting system, Chen Li believes that the delisting system needs to cooperate with the registration system to allow qualified enterprises to be listed, and companies with poor performance and no sustainable operation ability to be delisted to realize the survival of the fittest. At the same time, protect the legitimate rights and interests of investors and promote the continuous improvement of the A-share investment environment. The delisting system also needs to further tighten and refine the specific terms to make it more targeted. According to the nature of different industries, pay attention to the actual sustainable operation ability of the company, refine the delisting indicators, and make the formulation of indicators more strict.
Wang Huiqing believes that the optimization and improvement of the delisting system is a dynamic process, which needs to be continuously improved to realize the normalization of A-Shares and improve the market operation efficiency. We can consider further refining the delisting rules, simplifying the delisting procedures, strengthening the implementation of delisting, realizing the full withdrawal and steadily improving the delisting efficiency.
(Securities Daily)
