Diversified options for delisting 26 companies in the A-share market during the year
Our reporter Wu Xiaolu
On the evening of October 25, *ST Jitang issued an announcement stating that the company may be subject to a major illegal compulsory delisting risk warning.
According to the "Securities Daily" reporter, as of October 26, 26 listed companies have been delisted in the A-share market this year, of which 17 were forced to delist 6 financial delisting, 2 other types of delisting), 8 restructuring and delisting (including 4 mergers and mergers), and 1 voluntarily delisting.
From the perspective of specific delisting channels, compared with last year, the number of major illegal delisting companies and merging and merger delisting companies has increased, and the diversified exit channels have become smoother.
Market participants believe that in the future, the supervision of companies with major violations of laws and regulations such as financial fraud will increase their delisting efforts, and strict delisting supervision will become the norm.
Some experts also pointed out that the two arrangements of the Beijing Stock Exchange for delisting companies may be used for reference by the Shanghai and Shenzhen Stock Exchanges when they mature in the future.
Major violations of mandatory delisting
And the number of mergers and delistings increased
The data shows that a total of 31 companies will exit through various channels in 2020, hitting a record high.
Among them, 16 are forced delisting, including 6 financial indicators delisting, 9 face value delisting, and 1 regulated delisting; 15 are restructuring delisting, including 7 reorganized and listed, and 7 liquidated asset replacements. 1 merged.
Since the beginning of this year, the number of delisted companies hitting major illegal delisting indicators and merger delisting by absorption has increased. There were 2 and 4 delisted companies in the two types of delisting companies. No company hit the major violations of the mandatory delisting index last year. One company was delisted for merger by absorption.
Specifically, of the 17 compulsory delisting companies during the year, Kangde Retirement and Stai Retirement were major violations of mandatory delisting.
In addition to the aforementioned *ST Jitang, recently, *ST King Kong also received the "Advance Notice of Administrative Penalties and Market Banning" from the China Securities Regulatory Commission due to financial fraud. The retrospectively adjusted net assets on the 31st and December 31, 2020 may be negative, which may involve a major violation of mandatory delisting.
That is, the two companies may be involved in major violations of forced delisting.
"Since this year, the number of delisted companies has increased significantly, especially for financial fraud companies and companies with serious violations of laws and regulations. The delisting efforts have been significantly increased. This is also an important means to purify the capital market ecology and enhance market confidence." Chief Economics of Chuancai Securities Chen Li, director of the research institute and director of the Institute, said in an interview with a reporter from the Securities Daily that the increase in the number of mergers and delisting companies reflects the diversified choices in delisting channels.
"Strict delisting supervision will become the norm, especially in the sectors that implement the registration system, such as the Science and Technology Innovation Board, the Growth Enterprise Market, and the future Beijing Stock Exchange." Zhang Lei, a member of the Huatai Joint Securities Executive Committee, accepted the "Securities Daily" The reporter said in an interview that the new delisting regulations issued at the end of last year have clearly stipulated multi-dimensional delisting indicators, including market value, financial auditing, and liquidity.
Arrangements of Beijing Stock Exchange for Delisting Companies
Worth learning
The upcoming Beijing Stock Exchange (hereinafter referred to as the "Beijing Stock Exchange") has also constructed a diversified portfolio of delisting indicators and has special arrangements for delisting companies.
The Beijing Stock Exchange stated that for delisted companies that meet the basic or innovation-level listing conditions of the National Equity Exchange System, they are encouraged to enter the corresponding level of listing and trade and continue to develop; there are major violations of the law and other circumstances that do not meet the listing conditions, they will be transferred to the delisting The city company sector embodies the innovative exploration of "categorized relief and adequate mitigation" of delisting risks.
“The characteristics of the Beijing Stock Exchange’s delisting system may be largely related to its multi-level market structure.” Zhang Bingwen, a senior researcher at the Zhixin Investment Research Institute, said in an interview with a reporter from the Securities Daily. Delisting companies, if they are delisting in major violations of laws and regulations, are suitable for direct exit, but if they are listed companies that have been legally operating but have suffered losses for many years, it is more appropriate to continue low-frequency trading after reaching the innovation or basic level.
“Some companies’ main businesses are affected by changes in the market environment and may have major operating difficulties. Such companies may still achieve growth in the future through business restructuring.” Zhang Bingwen further stated that the Beijing Stock Exchange’s arrangements for delisting companies will become mature in the future. It can also be applied to other exchanges.
Zhang Lei believes that the scale of companies listed on the Beijing Stock Exchange is relatively small, and the industry’s ability to resist risks is weak, and it is easier to trigger trading or financial delisting indicators.
(Securities Daily)