Sino-Singapore Jingwei Client, November 12th (Zhang Shunan) Even when it was delisted, the once-popular Storm Group still sparked a lot of heated discussions.
In 2020, the government repeatedly reiterated strict delisting supervision, and countless vivid "risk education classes" were also staged in A shares.
The Sino-Singapore Jingwei Client noticed that 17 listed companies (including B shares) were forced to delist during the year, and over one million shareholders were "invited".
"Par value delisting" standard comes into play
As of November 11 this year, 17 listed companies have been forced to delist, including Shenwu Retirement, LeTV Retirement, Storm Retirement, Delisting Guarantee Thousand, etc.; and more than 40 listed companies have issued delisting risk warning announcements.
What needs to be mentioned is that on October 28, the Shenzhen Stock Exchange decided to terminate the listing of *ST Kaidi, and the securities referred to as "Kaidi Retire". Kaidi Retire became the 18th delisted company during the year, and the company’s stocks entered the delisting consolidation period. The starting date is November 5, 2020, and the final transaction date is expected to be December 16, 2020.
In addition, ST Soling’s announcement on November 10 disclosed that the company’s shares are facing major illegal and mandatory delisting risks.
As the first company with both A and B shares withdrawing, China Great Wall Co., Ltd. (Shencheng A withdrawing, Shencheng B withdrawing) entered the delisting period on November 25, 2019, and was delisted on January 7, 2020.
According to the Shencheng A retreat announcement, from September 26, 2019 to October 30, 2019, the daily closing prices of A shares and B shares of the company through the Shenzhen Stock Exchange trading system for 20 consecutive trading days were also lower than the face value of the stock ( 1 yuan), which belongs to the situation of the termination of stock listing.
Dongfeng B, a pure B-share company, withdrew from the market because it fell below the face value.
On May 28, the company disclosed that the Shenzhen Stock Exchange decided to terminate the listing of the company's shares.
So far, Dongfeng B retired and became the first pure B-share delisted in the domestic stock market.
One month later, Delisting Dahua B joined the "rank" and became the second pure B-share delisting company.
Judging from the reasons for the termination of listing of various companies during the year, 11 companies, including the delisting of Ruidian, LeTV, Shenwu, and the delisting of Yinge, belong to the "face value delisting", all of which touched the "daily closing for 20 consecutive trading days" The price is lower than the face value of the stock (1 yuan)".
"This standard has played a more significant role in 2020." Dong Dengxin, director of the Institute of Financial Securities of Wuhan University of Science and Technology, said that the "one dollar delisting" standard is the result of investors "voting with their feet", and investors are not affected by listed companies. The intervention and control of major shareholders and actual controllers does not require market disputes and discussions. Therefore, the "one dollar delisting" cycle is the shortest, the most efficient, and the most deterrent.
Involving over a million shareholders
Even at the time of its delisting, Baofeng Group, known as the "little LeTV", attracted a lot of attention.
Some netizens commented that “the tears of the times, my tears” and “Storm used to chase dramas before”; some netizens said, “I bought the stocks of Storm Group and made a little profit” “Oh, sigh.”
On the last day of the delisting period (9th), the storm closed down 3.45% to 0.28 yuan per share, with a market value of only 92.27 million yuan.
In the past, its market value soared to 40 billion yuan.
Storm Retreat announced on November 10 that because the company did not disclose the 2019 annual report within two months from the expiration of the statutory disclosure period, the company's stock was suspended from listing on July 8, 2020.
The company failed to disclose the 2019 annual report within one month after the stocks were suspended from listing, which touched on the termination of stocks stipulated in Article 13.4.1 (9) of the Shenzhen Stock Exchange's "GEM Listing Rules (November 2018) Amendments" Listing situation.
According to Wind, the 17 listed companies have more than one million shareholders.
Among them, LeTV has the largest number of retired shareholders. As of the end of March 2020, the total number of shareholders is 280,800.
LeTV used to be the best. After entering the A-share market for 10 years, the final share price closed at 0.18 yuan, with a total market value of 718 million yuan. At its peak, the market value of 170 billion yuan has evaporated by more than 99%.
The second largest shareholder is Ruidian, the former “first wind power share” delisted from the market. As of the end of March 2020, the total number of shareholders was 197 thousand.
The "destiny" of the delisting Ruidian was locked on April 7 this year. After the closing limit was reported on that day, even if the daily limit for the next 4 trading days was reached, the company's stock price could not return to the "surface" of the face value.
Officials reiterate strict delisting supervision
New latitude and longitude in the data map
On November 10, the China Securities Regulatory Commission held a mobilization and deployment meeting to implement the "Opinions of the State Council on Further Improving the Quality of Listed Companies".
The meeting required strict delisting supervision, improved delisting standards, and simplified delisting procedures.
The exchange must earnestly assume the main responsibility, and each dispatched agency shall strengthen cooperation with the local government, resolutely crack down on all kinds of malicious evasion of delisting, and severely deal with acts that use methods such as inciting visits to fight against supervision.
On November 2, the 16th meeting of the Central Committee for Comprehensive Deepening Reform deliberated and passed the "Implementation Plan for Improving the Delisting Mechanism for Listed Companies."
The meeting pointed out that improving the delisting mechanism of listed companies and cracking down on illegal securities activities in accordance with the law are important institutional arrangements for comprehensively deepening the reform of the capital market.
It is necessary to adhere to the direction of marketization and rule of law, improve delisting standards, simplify delisting procedures, broaden multiple exit channels, tighten delisting supervision, and improve normalized exit mechanisms.
Yang Delong, chief economist of Qianhai Kaiyuan Fund, believes that the next 10 years will be the 10 years of great development of value investment in the A-share market. Companies with good performance and companies with sustained profit growth will have higher and higher equity values, and the other part will have poor performance. Companies, or companies eliminated by economic transformation, will continue to decline, continue to be marginalized or even delisted. This differentiation will become more and more obvious.
Regarding the protection of investors after a company's delisting, Liu Feng, chief economist of Galaxy Securities, also said that the reform of the delisting system requires a balance to accurately crack down on illegal activities and maximize the protection of the interests of small and medium investors.
Professor Tang Xin of Tsinghua University School of Law also told the media that delisting is not "one-off". In particular, the responsible dual controllers, directors, supervisors, and even responsible intermediaries in delisted listed companies should follow the company According to the provisions of the Law and the Securities Law, investors who have suffered damages due to delisting shall be liable for compensation, and the implementation of civil liability regulations can truly protect investors.
(Zhongxin Jingwei APP)
(The opinions in the article are for reference only and do not constitute investment advice. Investment is risky, and you need to be cautious when entering the market.)
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