The new regulations on delisting will be issued for one year. According to the data, as of press time, since the formal release of the new delisting regulations on December 31 last year, a total of 23 companies have delisted in 2021, a record high over the years. 74 companies were warned of delisting risk by the exchange. Experts said that in the past year since the implementation of the new delisting regulations, poorly managed enterprises in the A-share market have accelerated the liquidation, the legitimate rights and interests of investors have been further protected, the investment environment has been continuously improved, the resource allocation mechanism of China’s financial market has been optimized, and the virtuous cycle between finance and the real economy is progressing steadily.
On December 27, Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) again disclosed the notice on the risk of mandatory delisting of stocks that may be subject to major violations. The announcement said that the CSRC filed a case against the company for investigation on suspicion of illegal information disclosure. At the end of 2019, the company falsely increased its net assets by RMB 1.856 billion, and the retroactively adjusted net assets may be negative on December 31, 2019 and December 31, 2020. The retroactively adjusted financial statements may touch the major illegal and compulsory delisting specified in the delisting regulations of the exchange, and the company’s shares may be subject to major illegal and compulsory delisting.
On December 31, 2020, the Shanghai and Shenzhen Stock Exchange officially issued the new delisting regulations, comprehensively revised the delisting standards for financial indicators, trading indicators, norms and major violations, cancelled the single continuous loss delisting index in all sectors, and formulated the financial index of deducting non net profit and operating revenue of RMB 100 million; On the basis of retaining the delisting standards for transactions such as “face value delisting”, set the standard of “market value of 300 million yuan”; Add standards for information disclosure and standardized operation that have major defects and refuse to correct; Increase major illegal delisting and refine the identification situation.
The implementation of the new delisting regulations has achieved remarkable results over the past year. According to the data of Hithink Royalflush Information Network Co.Ltd(300033) according to the statistics of delisting time, as of December 29, a total of 23 stocks in the A-share market were delisted in the year. The delisting reasons mainly involve five categories: loss for three consecutive years, share price lower than par value, failure to disclose periodic reports after suspension of listing, other non-conforming situations and absorption and consolidation. Among them, three are merger delisting, seven are “financial delisting” and six are “face value delisting”.
In terms of number, the total number of delisted companies this year hit a new high over the years, three more than 20 in the whole year of last year, nearly double that of 12 in 2019, accounting for 13.61% of the total number of delisted companies in the A-share market since the delisting of companies first appeared in 1999.
At the same time, there are many companies wandering on the edge of delisting. According to the data of Hithink Royalflush Information Network Co.Ltd(300033) , 74 companies were warned of delisting risk by the exchange during the year. At present, 108 companies in the A-share market were warned of delisting risk. In terms of the types of early warning indicators, financial early warning accounts for the largest proportion, a total of 85. In addition, there are regulatory early warning, major violation early warning, etc. Among delisting risk stocks, Great Wall International Acg Co.Ltd(000835) touches the most early warning indicators (including delisting risk warning and other risk warnings). At present, it touches five early warning indicators: financial, normative and major violations. Two other companies touched four early warning indicators at the same time, five companies touched three indicators at the same time, and 32 companies touched two indicators at the same time.
According to the data of Hithink Royalflush Information Network Co.Ltd(300033) , as of December 29, in terms of transaction indicators, the average closing price of four companies including Xin Jiang Ready Health Industry Co.Ltd(600090) and Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) in recent 20 trading days was less than 1.5 yuan, approaching the warning line of “face value delisting”. There are 24 companies with an average total market value of less than 1 billion yuan in nearly 20 trading days. Among them, the average total market value of Yintu netlink in recent 20 trading days was 572 million yuan.
In terms of financial indicators, 50 companies touched the combination index of net profit after deduction and operating revenue (the net profit after deduction is negative and the operating revenue is less than 100 million yuan), 35 companies had negative audited ending net assets in the latest fiscal year, and 27 companies were issued audit reports that could not express opinions or negative opinions in the latest fiscal year.
In terms of normative risks, 146 companies had defect risks in information disclosure or standardized operation in the last year, and 104 companies were involved in case filing and investigation in the last year.
“Compared with 2020, the number of delisting companies involved in major illegal compulsory delisting indicators has increased, which has promoted the survival of the fittest in the A-share market. At the same time, under the dual role of the new delisting regulations and the registration system, the ‘backdoor listing’ and ‘shell protection’ behavior in the A-share market has decreased, and the proportion of delisting enterprises due to their share price lower than the par value has further increased since 2021.” Chen Li, chief economist of Chuancai securities and director of the Research Institute, said that in the past year since the implementation of the new delisting regulations, the delisting system has been continuously optimized, the delisting standard system has been improved and the coverage has been wider, accelerated the dismissal of enterprises with poor management in the A-share market, protected the legitimate rights and interests of investors, promoted the continuous improvement of the investment environment in the A-share market, and optimized the resource allocation mechanism of China’s financial market, It has promoted a virtuous circle between finance and the real economy.
“This is the market expectation of the new delisting system brought about by the reform of the registration system.” Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology, believes that the implementation of the new delisting regulations has optimized the market ecology. The efficient and rapid exit of bag companies without main business and zombie enterprises with long-term losses will lay the foundation for the optimal allocation of market resources and the construction of the market environment of survival of the fittest, and will be more conducive to giving full play to the role of capital market in serving the real economy.
Chen Li believes that in the future, with the continuous improvement of the new delisting regulations, the multi-dimensional delisting evaluation system will promote the diversification of delisting types in the A-share market and realize the normalized delisting mechanism. At the same time, the delisting process of enterprises will be further shortened. The A-share market will accelerate the liquidation of enterprises that meet the delisting standards, optimize capital circulation, and promote the financial market to give full play to the role of resource allocation.
(economic information daily)
