After three years of suspension, Dea General Aviation Holding Co.Ltd(002260) failed to perform the drama of black chicken changing into Phoenix. Recently, the company announced that the Shenzhen Stock Exchange did not agree with the company’s application to resume listing, and the company’s shares will enter the delisting consolidation period on May 5. And on the next trading day after the expiration of the delisting consolidation period, the company’s shares will be delisted.
For the company’s more than 20000 investors, there is no doubt that they will face a sharp decline in the market value of their shares. Some investors joked that “it was originally indefinite, but it was sentenced to death”. There are not a few companies that have suspended trading for a long time, planned asset restructuring without success, resumed trading, plummeted or even delisted. Shenzhen Special Economic Zone Real Estate&Properties (Group).Co.Ltd(000029) , which had attracted much market attention because of Hengda’s backdoor, was suspended for 1513 days from 2016 to 2020. Later, it announced the failure of restructuring, resulting in the near halving of the share price in a short time.
The same example is Huaze Tui (formerly known as Huaze cobalt nickel). The company announced in February 2016 that it planned to carry out major asset restructuring and suspend trading until March 2018, which lasted two years. With the abortion of the restructuring plan, the stock suffered 46 limits after the resumption of trading, and the share price plunged 96.72%. The company was finally doomed to delisting.
Delisting companies hope that the practice of shell preservation is understandable, but they often suspend trading for several years. During this period, they use the concepts of “introduction of war investment”, “cross-border M & a”, “equity transfer” and other non substantive concepts to deal with regulators and investors, so as to delay delisting is tantamount to hiding their ears and stealing their bells.
The author believes that during the listing period, in addition to the impact of external force majeure, the company’s performance declined due to its improper operation. It was not until he was capped by the Beatles and touched the red line of various delisting rules that he began to turn the tide, which was a bit of a catch-up. Fortunately, since the regulators issued the listing rules, known as the most stringent new delisting rules in history, in 2020, the regulators’ attitude towards the delisting of low-quality companies has become more and more tough. Among them, the “suspension of listing” and “resumption of listing” systems have been cancelled, and the phenomenon of delisting in the above-mentioned suspension for several years will be less and less.
Those who meet the delisting conditions will be delisted directly and the delisting process will be greatly shortened. If Egls Co.Ltd(002619) , which triggers face value delisting, the share price of less than 1 yuan for 20 consecutive trading days will be delisted, and there will be no delisting consolidation period during the period; Delisting Xinyi triggered a major illegal forced delisting. On the first day of the delisting consolidation period, the share price plunged by 72%, and the speculation space of speculators was greatly reduced; While Great Wall International Acg Co.Ltd(000835) , Xinjiang La Chapelle Fashion Co.Ltd(603157) , Chunghsin Technology Group Co.Ltd(603996) will trigger the mandatory retirement system of financial indicators, and will also bid farewell to A-Shares in the near future.
In addition to the provisions on the delisting of listed companies, the regulatory period for the delisting of listed companies has also been improved. In January this year, the Shanghai Stock Exchange issued Article 8 of Chapter II of the guidelines on self discipline supervision of listed companies of Shanghai Stock Exchange No. 4 – suspension and resumption of trading, which pointed out that listed companies planning to issue shares to buy assets can apply for short-term suspension according to the actual situation, and the suspension time shall not exceed 10 trading days. Article 11 of Chapter II points out that the company cannot disclose the reorganization plan or report before the expiration of the suspension period specified in Article 8, but if the relevant state departments have other requirements on the suspension and resumption time of relevant matters, the company may apply for continued suspension, but the continuous suspension time shall not exceed 25 trading days in principle.
This year, especially since April, the A-share market has fluctuated violently, and the high-priced new shares issued under the registration system have been broken repeatedly, which reflects the urgent requirements of the market for the delisting of low-quality companies. Although the current delisting speed and number of A-share companies need to be improved, under the guidance of the iron fist of the regulators, the survival space of STS “protected” by the old rules has been quite limited, and a major reform of A-share companies is under way.
