Great Wall International Acg Co.Ltd(000835) 3 announced on March 24 that the company touched the listing termination clause of Shenzhen Stock Exchange and its trading was suspended from the opening of the market on March 25. Experts said that Great Wall International Acg Co.Ltd(000835) is likely to be the first company to touch the financial delisting index in 2022. At the same time, the first “1 yuan delisting” company this year is basically locked Egls Co.Ltd(002619) share price closed at 0.72 yuan on March 24, which will trigger the delisting of trading and the termination of listing.
In addition to Great Wall International Acg Co.Ltd(000835) , at least 14 companies including Chunghsin Technology Group Co.Ltd(603996) and others may be forced to delist due to financial delisting indicators. Previously, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) touched on major illegal compulsory delisting, becoming the first A-share delisting company in 2022.
Experts said that in the more than one year since the implementation of the “strictest new regulations on delisting in history”, the expectation of normalized delisting has increased. Under the expectation of fully implementing the stock issuance registration system, the clearing of venture companies will be further accelerated, so as to effectively enhance the resource allocation capacity of the market and promote the stable operation of China’s securities market.
companies or financial delisting indicators
Great Wall International Acg Co.Ltd(000835) 3 announced on March 24 that the net assets attributable to the shareholders of the listed company in 2021 were negative, and the net profit attributable to the shareholders of the listed company was negative. The opinion type issued by zhongtianyun Certified Public Accountants (special general partnership) for its 2021 financial report was unable to express opinions. The company’s shares touched the terms of termination of listing of Shenzhen Stock Exchange and were suspended from the opening of the market on March 25. Experts believe that it is likely to become the first company to touch the financial delisting index in 2022.
Experts said that according to the financial delisting process of the new delisting regulations, companies whose financial conditions do not meet the standards in the first year will be subject to delisting risk warning, and companies whose financial indicators do not meet the standards in the second year will be directly delisted. This means that “shell” and “zombie” companies only need two fiscal years from being identified to delisting.
In addition to the ‘ Great Wall International Acg Co.Ltd(000835) , which is the Party of the Party ”’ Egls Co.Ltd(002619) , Northeast Electric Development Company Limited(000585) , Huaxun Fangzhou Co.Ltd(000687) , Boomsense Technology Co.Ltd(300312) , Tempus Global Business Service Group Holding Ltd(300178) , Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) .
“After the delisting system cancels the suspension of listing, the number of financial compulsory delisting companies may increase significantly in 2022.” Wei Wei, chief strategist of Ping An Securities, said that the new delisting rules have streamlined the delisting process and shortened the delisting time from the original four years to two years. The 2020 annual report is the first applicable year of the new delisting rules. If the 2021 annual report touches the delisting standard again, it will be directly terminated. Therefore, 2022 may be the year of delisting.
diversified delisting has gradually become the norm
Analysts believe that since the implementation of the new delisting regulations, various types of delisting cases have been increasing, and diversified delisting has entered a new stage.
In addition to the above-mentioned delisting cases of financial indicators, the delisting cases of transaction indicators also began to increase. As of March 24, the closing price of Egls Co.Ltd(002619) shares was 0.72 yuan, which was lower than 1 yuan for the 15th consecutive trading day. According to the calculation, even if the daily limit is realized in the following five trading days, the Egls Co.Ltd(002619) share price is still lower than 1 yuan, thus touching the delisting regulation that the closing price is lower than 1 yuan for 20 consecutive trading days, which means that Egls Co.Ltd(002619) basically locks delisting.
In addition, major illegal forced delisting shows its power. On March 22, the Shanghai Stock Exchange announced that it had decided to terminate the listing of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) company. According to the administrative punishment decision of the CSRC, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) 2018 and 2019 were two consecutive years of financial fraud. After retroactive adjustment, the actual operating income of the company was less than 10 million yuan for three consecutive fiscal years from 2018 to 2020, which touched on major illegal compulsory delisting, becoming the first delisting company of A-Shares in 2022.
“The number of delisting companies with trading indicators and financial indicators has increased, which is the result of the continuous optimization of the delisting system. The exit channels of A-Shares are becoming more and more unblocked, and investors’ voting with their feet will further force the survival of the fittest and complete the self purification of the market. In 2022, many listed companies will be delisted due to triggering financial, trading or major illegal indicators.” Chen Li, chief economist of Chuancai securities and director of the Research Institute, said.
ensure “retreat down” and “retreat steadily”
According to expert analysis, under the background of fully implementing the stock issuance registration system, only when the delisting “export” is unblocked, can the benign market ecology of the survival of the fittest in the A-share market be accelerated. “Retreat as much as possible” has become a market consensus, and the situation of “retreat down” and “retreat steadily” is taking shape.
At present, the relevant delisting mechanism is still further improved. On February 25, the CSRC publicly solicited opinions on the guidance on improving the post delisting supervision of listed companies, aiming to meet the requirements of the registration system reform and normalized delisting, and further improve the post delisting supervision of listed companies. “Since the implementation of the new delisting regulations, the low delisting rate in China’s capital market has improved, but there is still a long way to go from a mature capital market structure.” Tian Xuan, vice president of Wudaokou School of finance of Tsinghua University, suggested that we should adhere to the bottom line of “zero tolerance”, improve supervision and punishment, continue to carry out standardized supervision of information disclosure and corporate governance, increase the cost of violations and crimes, and clean up “shell protection” behaviors such as whitewashing statements.
Experts also suggested that on the basis of “returning as much as possible”, we should “protect as much as possible” and effectively protect the legitimate rights and interests of investors. “In recent years, ordinary representative litigation and special representative litigation cases have been implemented one after another, the model judgment mechanism for securities disputes has been widely used, and the channels for investors to protect their rights have been continuously expanded, providing a series of institutional support for the” return as much as possible “. It is suggested to further improve the civil compensation system, improve the laws and regulations and judicial security system, and use supporting means such as first compensation and fraudulent issuance order repurchase to maximize the protection of the interests of small and medium-sized investors Benefit. ” Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology, said.
Of course, delisting is a systematic project. It is more necessary to unite the joint efforts of various parties to “retreat down” and “retreat steadily”. The reporter of China Securities Journal learned that in order to enhance the rigidity of delisting, the CSRC will work with local governments and relevant departments to severely crack down on and seriously pursue responsibility for adverse behaviors such as confrontation and supervision, improper rights protection and even incitement to mass incidents in the process of delisting, so as to ensure the smooth progress of reform and actively create a good market ecology.
