Since 2022, the relevant provisions of compulsory delisting are gradually eliminating some listed companies from the capital market. Data show that 227 companies have touched the delisting warning line.
In this regard, lawyer Xu Jiawu, senior partner of Hairun Tianrui law firm, explained to the reporter of Securities Daily that according to the stock listing rules of Shanghai Stock Exchange and the stock listing rules of Shenzhen Stock Exchange revised in January 2022, compulsory delisting is mainly divided into four categories: transaction compulsory delisting, financial compulsory delisting, normative compulsory delisting and major illegal compulsory delisting. Since 2022, companies have been forcibly delisted due to touching the red line, indicating that the compulsory delisting system in the capital market is being strictly implemented. Under the background of fully implementing the stock issuance registration system, simultaneously promoting the compulsory delisting system is an important part of the continuous deepening reform of the capital market.
21 companies have stepped on more than 2 delisting red lines
Since this year, many companies have announced the risks related to the termination of listing. For example, Egls Co.Ltd(002619) because the share price is lower than 1 yuan for 20 consecutive trading days, it touches the transaction delisting; Delisting Xinyi received the decision to terminate the listing of shares issued by Shanghai stock exchange due to the implementation measures for compulsory delisting due to major violations Great Wall International Acg Co.Ltd(000835) after the release of the annual report, it is suggested that there is a risk of termination of listing and suspension of trading.
It should be noted that many companies have stepped on more than one delisting red line. For example, in addition to Egls Co.Ltd(002619) , Northeast Electric Development Company Limited(000585) , Xin Jiang Ready Health Industry Co.Ltd(600090) , Chunghsin Technology Group Co.Ltd(603996) the current share price is also less than 1 yuan, and the latest market value of Chunghsin Technology Group Co.Ltd(603996) is less than 300 million yuan.
From the red line of financial indicators, Northeast Electric Development Company Limited(000585) , Great Wall International Acg Co.Ltd(000835) , Chunghsin Technology Group Co.Ltd(603996) 2021 net profit loss, and operating income is less than 100 million yuan. Meanwhile, the net assets at the end of Northeast Electric Development Company Limited(000585) , Great Wall International Acg Co.Ltd(000835) , Chunghsin Technology Group Co.Ltd(603996) 2021 are negative Great Wall International Acg Co.Ltd(000835) and Chunghsin Technology Group Co.Ltd(603996) were issued with non-standard opinions.
There are more than 100 enterprises that touch the two red lines of normative delisting risk and major illegal delisting risk. According to the comprehensive data, 21 companies have stepped on more than two delisting red lines, with great risk.
Some people from investment institutions mentioned to the reporter of Securities Daily that in recent years, the investment environment has changed, and the atmosphere of “small speculation and poor speculation” has changed. For some listed companies with obvious “weakness to return to the sky”, investors have a clear attitude and will not gamble on the backdoor expectations in the future. This is also the reason why some companies with poor fundamentals are voted by investors with their feet in the secondary market, resulting in the face value delisting crisis.
returning to the capital market is not easy
\u3000\u3000 “Previously, listed companies were ‘scarce resources’, and inferior companies could not withdraw in an orderly manner, resulting in a lot of funds keen on speculation and shell speculation rather than following the concept of value investment, resulting in excellent companies that need capital development can not get the support of capital market funds. This seriously distorted market form is extremely unfavorable to the rational allocation of capital, the healthy development of economy and the promotion of social equity The system makes it very important for good money to expel bad money. ” Xu Jiawu told the reporter of Securities Daily that the increase in the number of delisting of listed companies, combined with the continuous strengthening of supervision and punishment, shows that the pace of the construction of the rule of law in China’s securities market is accelerating. While fully protecting the rights and interests of investors, we will resolutely clear the listed companies with poor quality, so as to provide a broad space and a good capital market environment for the listing and financing of real enterprises.
After being forced to withdraw from the market, it is not easy to return to the capital market. Xu Jiawu told the reporter of Securities Daily that there are special chapters in the stock listing rules of Shanghai and Shenzhen Stock Exchange, which stipulate that listed companies that are forced to withdraw from listing can be listed again, but they all stipulate strict conditions and need to be reviewed according to strict procedures.
\u3000\u3000 “The Listing Rules of the Shanghai and Shenzhen stock exchanges also stipulate that listed companies whose shares have been delisted by the bourse due to fraudulent issuance and forced delisting shall not be re listed in the bourse. Therefore, except for the extremely bad fraudulent listing, these listed companies that have been forced to delist should focus on their main business, get rid of the heavy debt burden through bankruptcy reorganization, or carry out asset reorganization and put in high-quality assets In order to effectively improve the production and operation status and enterprise quality, the door of the securities market is still open for them. However, although there are opportunities for re listing after delisting, it is still very difficult on the whole. ” Xu Jiawu said.
It should be noted that among the above 227 listed companies stepping on the relevant red line, the enterprises involved in the major illegal red line account for more, accounting for nearly half. In these listed companies with major violations, how to ensure the diligence of third-party institutions such as audit institutions has also been a hot topic in the capital market in recent months.
Xu Jiawu frankly said that third-party institutions must strictly comply with the practice norms, require employees and require listed companies, and should not accommodate the demands of listed companies. “For securities companies, law firms and audit institutions, in the face of the new situation that the regulatory authorities continue to strengthen the delisting rules and clear out low-quality listed companies, they need to be more strict with their own professional discipline and professional ethics, and constantly improve their own professional ability and level.”
