Countdown of Storm Group's withdrawal from the market, the efficiency of the survival of the fittest under the registration system will be higher
Spotlight
The A-share market is no longer the A-share market a few years ago or even more than ten years ago.
From July 8th, Storm Group began to suspend listing. For this result, in fact, the market has already expected.
During the leveraged bull market in 2015, with the help of the Internet+ hype boom, Storm Group returned to the A-share listing and gained a crazy market hype. After landing in the GEM market in March 2015, there were thirty consecutive one-day price limit trends. The stock price reached a maximum of 327 yuan, and the corresponding stock market value reached more than 40 billion yuan. Storm Group is undoubtedly the big winner of the last leveraged bull market.
However, after a lapse of five years, the entire market has undergone tremendous changes. At that time, LeTV, which was frantically fired by the market, is now facing the fate of terminating its listing. As for Storm Group, it was suspended from listing. According to the current development and operation status of Storm Group, it has actually entered the countdown for delisting.
Over the years, the development and operating conditions of Storm Group have plummeted. Following the huge losses in 2018, the 2019 financial report data has further deteriorated. As a barometer of the operating conditions of listed companies, Storm Group's stock prices have reached record lows in recent years. As of the suspension of trading, Storm Group’s price per share was only 1.48 yuan, a significant decrease from the highest price of the year. As for the total market value of stocks, it recorded 487.7 million yuan, which is different from the glorious period when the market value exceeded 40 billion yuan.
Storm Group fell from the peak to the bottom, which is inextricably linked to the strategic positioning mistakes of previous years. Similar to LeTV.com, Storm Group has been expanding wildly in recent years, trying to create a beautiful blueprint. However, due to strategic mistakes, it eventually triggered the risk of Storm Group’s capital chain crisis.
Today, the suspension of listing is just the beginning of the test. If Storm Group cannot disclose the 2019 annual report within the following month, it will be subject to termination of listing. For the current Storm Group, it is on the verge of delisting, and it is a hard test for the existing 68,500 shareholders.
From the Science and Technology Board to the Growth Enterprise Board, the domestic capital market is starting to reform its registration system. As the most market-oriented issuance system, the comprehensive promotion of the registration system will mean that the domestic capital market will accelerate the realization of full market-oriented reforms. It can be expected that the survival of the fittest in the domestic capital market will be significantly improved in the future, and the stock delisting rate will also increase significantly. Affected by this, for underperforming stocks or problem stocks, there will be increasing pressure in the future. I am afraid that it is not easy to retain the company's listing status for a long time.
Technology companies that were once at their peak are now on the verge of delisting. In capital markets, changes will always exist. Under the background of accelerating the registration system, listed companies that do not think about progress and poor management will eventually be eliminated by the market. Obviously, the current A-share market is no longer the A-share market a few years ago or even more than a decade ago. The difficulty of listing and delisting will come to an end, and investors should actively adapt to changes in the market environment. Under the environment of comprehensively promoting the registration system, it will also change the past investors’ investment strategies and profit models, and the pressure of “de-divided households” will continue to increase.
□Guo Shiliang (financial commentator)