On May 24, the delisted companies in Lhasa and Zhongxin will be officially delisted at the end of the delisting consolidation period; On May 25, six listed companies including Shanghai U9 Game Co.Ltd(600652) and others will enter the delisting period. Since this year, the “metabolism” of A-Shares has continued to accelerate, and more than 40 companies have been delisted during the year. Industry experts believe that the problem companies are cleared quickly, the overall market environment is clearer, and its function of optimizing resource allocation and survival of the fittest can be brought into play.
6 companies were forcibly delisted on the same day
On May 17, Shanghai U9 Game Co.Ltd(600652) , Baotou Tomorrow Technology Co.Ltd(600091) , Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) , Cred Holding Co.Ltd(600890) , Hubei Wuchangyu Co.Ltd(600275) , Lawton Development Co.Ltd(600209) successively announced that the Shanghai Stock Exchange decided to terminate the listing of the company’s shares, and the company’s shares will enter the delisting and consolidation period from May 25. The final trading date is expected to be June 15, 2022. The above six companies were forced to delist because they touched the financial delisting indicators.
Shanghai U9 Game Co.Ltd(600652) became another game stock facing delisting after Egls Co.Ltd(002619) during the year. According to the announcement, Shanghai U9 Game Co.Ltd(600652) because the audited net profit in 2020 is negative and the operating income is less than RMB 100 million, the delisting risk warning of the company’s shares has been implemented since April 30, 2021 The Shanghai U9 Game Co.Ltd(600652) annual report shows that the audited operating income in 2021 is 158273 million yuan, the operating income after deducting the business income irrelevant to the main business and the income without commercial substance is 105666 million yuan, and the audited net profit is -758199 million yuan. The above circumstances belong to the circumstances of stock delisting stipulated by the Shanghai Stock Exchange. According to relevant regulations, the Listing Committee of Shanghai Stock Exchange decided to terminate the listing of the company’s shares.
Similarly, on the 17th, both delisting Lhasa and delisting Zhongxin announced that as of May 17, 2022, the company’s shares had been traded for 15 trading days in the delisting consolidation period, and the delisting consolidation period had ended; The company will be delisted by the Shanghai Stock Exchange on May 24, 2022, and the listing of the company’s shares will be terminated.
According to the data, 62 companies have been “wearing stars and hats” this year, and 10 have successively issued the announcement of “entering the delisting consolidation period” since April. On May 16, Changdong Securities Co., Ltd. issued the fourth risk warning announcement for the transaction in the delisting consolidation period. The final trading date is expected to be May 20, 2022. On the trading day next to the expiration of the delisting consolidation period, Shenzhen Stock Exchange will delist the company’s shares. According to the announcement of listed companies and the data of the exchange, the reporter of economic information daily found that as of May 18, 45 companies in Shanghai and Shenzhen had delisted this year (21 in Shanghai and 24 in Shenzhen), and the number reached a new high. It is worth noting that this figure is almost twice the number of delisting last year. According to the data, a total of 23 companies in the A-share market withdrew from the market in 2021 (14 in Shanghai and 9 in Shenzhen).
Shanghai stock exchange data show that up to now, 21 companies in Shanghai Stock Exchange are expected to touch all kinds of delisting. Among them, the delisting of Xinyi involves major illegal delisting. It is estimated that 17 companies including Baotou Tomorrow Technology Co.Ltd(600091) , Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) and Anhui Andeli Department Store Co.Ltd(603031) and Guangdong Mingzhu Group Co.Ltd(600382) will exit through diversified channels such as restructuring and active delisting. Up to now, the number of delisting in Shanghai stock market has increased by 50% compared with 2021, of which the compulsory delisting has increased by 125%, and the delisting rate of delisting risk warning companies has reached about 45%. Another 13 companies touch the ST situation and 28 companies touch the st situation. A benign mechanism for the survival of the fittest of listed companies is taking shape. In Shenzhen, a total of 24 companies, including St danbang and St lion, were delisted, of which Egls Co.Ltd(002619) touched face value delisting, Dea General Aviation Holding Co.Ltd(002260) was vetoed by the municipal Party committee due to the application for resumption of listing, and the remaining 22 companies were delisted in finance.
normalized delisting mechanism gradually formed
Under the background of the comprehensive registration system, the delisting system has been continuously optimized, and the normalized delisting mechanism is gradually taking shape.
In December 2020, the Shanghai and Shenzhen Stock Exchange issued the “new regulations on delisting”, comprehensively improved the delisting standards, simplified the delisting process and strictly supervised delisting; On February 25 this year, the CSRC drafted the guidance on improving the supervision of listed companies after delisting to solicit opinions from the public. Subsequently, the Shanghai Shenzhen North Stock Exchange issued supporting implementation measures and solicited opinions from the public.
At the end of March this year, the general office of the CPC Central Committee and the general office of the State Council issued the opinions on promoting the construction of social credit system and high-quality development and promoting the formation of a new development pattern, which once again pointed out that the compulsory delisting system should be strictly implemented and a virtuous cycle mechanism for the survival of the fittest of listed companies should be established. Subsequently, the Shanghai and Shenzhen stock exchanges issued guidelines on the information disclosure of bankruptcy and reorganization of listed companies, based on standardizing the information disclosure of bankruptcy and reorganization and other matters, improve the risk resolution and exit mechanism of listed companies, protect the interests of investors, maintain a standardized and transparent market environment, and promote the construction of an in and out market ecology.
Haitong Securities Company Limited(600837) chief analyst Xun Yugen believes that at present, the normalized delisting mechanism of A-Shares is gradually taking shape. “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 under the implementation of the new delisting regulations, the delisting efficiency of the A-share market has been greatly improved, the delisting cycle has been shortened, and the market ecology has been optimized. The efficient and rapid exit of “leather 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 for the survival of the fittest, which is more conducive to giving full play to the role of capital market in serving the real economy.
Chen Li, chief economist of Chuancai securities and director of the Research Institute, also believes that the number of delisted enterprises has increased significantly after the implementation of the new delisting regulations. For the capital market, some enterprises with poor profitability were forced to withdraw from the market, which improved the overall quality of listed companies. The overall value of the market can be better manipulated without the “poor quality” of the capital market. The new delisting regulations also play a role of supervision and vigilance for enterprises, and improve the quality requirements of information disclosure for enterprises. The overall quality improvement of listed enterprises enables investors to invest more confidently.
