China-Singapore Jingwei, December 28 (Gao Boning, Lin Jian) ​​The implementation of "the most stringent new delisting regulations in history" is about to complete its first anniversary.

As of December 27, 23 A-share companies have been delisted this year, a slight increase from 2020, and more companies have been subject to risk warnings.

Many industry experts interviewed by Sino-Singapore Jingwei said that with the acceleration of the A-share registration system, the number of A-share delisting companies may continue to increase in the future.

　　Not only that, experts pointed out that the new delisting regulations have created a targeted attack on the behavior of “protecting the shell” through operations such as whitewashing statements, increasing revenue, and asset transfers, and the difficulty of “protecting the shell” will continue to increase.

23 companies leaving A shares

　　On December 31, 2020, the Shanghai and Shenzhen Stock Exchanges respectively issued newly revised "Stock Listing Rules", which revised the delisting standards for financial indicators, trading indicators, norms, and major violations. Important amendments include the addition of " For 20 consecutive trading days, the total daily closing market value of stocks was less than 300 million yuan.” The market value delisting index was canceled. The suspension and resumption of listing were cancelled. The delisting period was shortened to 15 trading days. At the same time, the delisting situation of trading was cancelled. The setting of the delisting period of the market, etc.

　　The above-mentioned amendments have further improved the delisting standards, simplified the delisting procedures, and strengthened the supervision of delisting. Some market participants called it "the most stringent new delisting rule in history."

At that time, relevant experts predicted that with the implementation of the new delisting regulations, the number of listed companies on the A-share market may increase significantly in 2021, and the ratio of IPO issuance to delisting will be closer to the international mature capital market.

　　Sino-Singapore Jingwei noticed that compared with 20 companies delisting A-shares in 2020, the number of A-share delistings this year has increased.

According to Wind data, as of now, 23 A-share companies have been delisted during the year.

Among them, the reason for the delisting of 7 companies was to trigger the "one dollar delisting" standard, 8 companies had losses for 3 consecutive years or more, and 3 companies were mergers by absorption.

　　In this regard, Chen Li, chief economist and research director of Chuancai Securities, pointed out in an interview with Sino-Singapore Jingwei that with the introduction of new delisting regulations and the improvement of the delisting system, it will speed up the clearing of existing mismanagement. Enterprises, promote the delisting of A-share listed companies to achieve true normalization.

　　However, there is still a market view that, from a quantitative point of view, the number of A-share delisting companies has not increased sharply after the release of the new delisting regulations, especially in the context of the booming new share issuance market in 2021.

According to Wind data, as of December 27, a total of 515 new shares were listed in the A-share market, and in 2020, the number of A-share listings was 437.

　　Tian Xuan, School of Finance, Wudaokou, Tsinghua University, pointed out to Zhongxin Jingwei that from the current overall delisting rate, there is indeed a gap between the A-share market and the mature capital market.

　　Tian Xuan analyzed that the reason for the difficulty of A-share delisting is that the mandatory delisting standards are still mild, the delisting implementation is not strong enough, and the process still needs to be simplified.

Chen Li told Zhongxin Jingwei that the new delisting regulations were introduced in December 2020, and some companies can increase revenue through various means to avoid delisting.

　　Sino-Singapore Jingwei noted that Wind data showed that as of December 27, 48 of the A-share listed companies had net profit, operating income and last year’s combined indicators of less than RMB 100 million in 2021, and 50 companies The latest net assets of companies in 2021 are negative, and 94 companies have major flaws in their information disclosure and operation in the past year.

Where does the A-share "phoenix" go?

　　After the introduction of the new delisting regulations, some experts pointed out that relevant supporting systems still need to be improved.

In November of this year, the Shanghai and Shenzhen Stock Exchanges respectively issued the "Guidelines for the Deduction of Operating Income" (hereinafter referred to as the "Guide"). Based on the summary of the operating income deduction in the annual report of listed companies in 2020 and the supervisory experience, the Based on the relevant rules, the operating income deduction standard was further optimized and revised.

The industry believes that the main purpose of this guide is to accurately attack shell companies, to encourage listed companies to improve their performance, and it also marks the further improvement of the delisting system.

　　Sino-Singapore Jingwei noticed that since December, many companies such as *ST Schwab, *ST Huachang, *ST Jitang, *ST Xinyi, *ST King Kong, etc. have successively issued risk warning announcements that may be terminated from listing. .

　　In addition, compared to 2020, more companies have been subject to risk warnings.

According to the statistics of Enterprise Early Warning, as of December 27, there were 104 A shares*ST shares (with delisting risk warnings) and 77 ST shares (with special handling and other risk warnings).

Some people in the industry believe that the implementation of delisting risk warnings on listed company stocks aims to warn investors of the current delisting risk situations faced by the company and remind investors to pay full attention to the company’s business risks and make prudent decisions when trading stocks.

　　It is worth noting that some ST companies have not improved their operating conditions, but they have successively won the daily limit.

Wind data shows that from the beginning of 2021, among the hundreds of risk warning stocks in A shares, 20 stocks have interval daily limit of 50 trading days or more, and 60 stocks have interval daily limit of 30 trading days or more.

　　Regarding the phenomenon of frequent speculation of risk-indicating stocks, Tian Xuan pointed out that the key reason is that the delisting mechanism and supporting systems are not yet complete. The tolerance for “zombie companies” that need to be cleared is still high, and market liquidity needs to be further strengthened in the future.

　　As "zombie companies" are difficult to eliminate, there will often be an annual "shell war" at the end of the year.

According to Wind data, in the past month, 31 risk warning stocks issued 161 announcements related to restructuring.

Tian Xuan said that the new ST and *ST risk warning arrangements added to the new delisting regulations were originally intended to eliminate shell companies, but in practice, listed companies continue to “protect shells” through reorganization and control changes.

　　However, in Tian Xuan's view, the introduction of the new delisting regulations has already taken a targeted blow to the "shell" behavior that relies on operations such as whitewashing reports, increasing revenue, and asset transfers, and the difficulty of "protecting the shell" will continue to increase. big.

With the improvement of subsequent supporting systems, the market will gradually improve the ecology of the survival of the fittest, and the value of "shell resources" will further decline. The trend of "shell preservation" will no longer be prominent, and the necessity will also weaken.

　　Regarding the future governance direction of the above-mentioned "ST concept stocks", Tian Xuan said that he looks forward to further strengthening the delisting standards, simplifying the delisting process, strengthening the delisting implementation, smoothing the financing channels for companies after delisting, and realizing the complete A-share "phoenix" as soon as possible Exit the stage of history.

　　In addition to issues such as shell preservation and shell speculation, in the view of Dong Dengxin, director of the Institute of Financial Securities at Wuhan University of Science and Technology, although the new regulations are quite effective in preventing the reorganization of corporate financial statements, there are still some loopholes that need to be paid attention to by all parties.

　　The newly revised "Listing Rules" canceled the link of suspension of listing and resumption of listing, and provided more convenience for delisted companies to return to the main board market.

The Shanghai Stock Exchange’s “Implementation Measures for the Re-listing of Delisted Companies on the Shanghai Stock Exchange” issued on December 31, 2020 regulates the re-listing conditions of terminated companies. For example, the net profits of the most recent three fiscal years were all positive and exceeded RMB 30 million, net profit is calculated based on the lower before and after deduction of non-recurring gains and losses; the cumulative net cash flow from operating activities in the last 3 fiscal years exceeds RMB 50 million, or the cumulative operating income of the last 3 fiscal years Over RMB 300 million; the audited net assets at the end of the most recent fiscal year are positive.

　　The concern of industry experts such as Dong Dengxin is that the “re-listing” clause is equivalent to giving the green light to delisting junk stocks.

Allowing junk stocks to relist at a low threshold is actually contrary to the survival of the fittest in the capital market.

　　"Only when the loopholes in the re-listing system are closed, investors will vote with their feet to truly cultivate investors' risk awareness, and at the same time play the role of the'one dollar delisting' standard. This is very important for the resource allocation function of the stock market." Dong Dengxin Said so.

The number of delisted companies may continue to increase

　　In response to the focus of the reform of the capital market in 2022, the Central Economic Work Conference held this year clearly stated for the first time the need to "fully implement the registration system for stock issuance."

In this regard, many industry experts interviewed by Sino-Singapore Jingwei said that with the acceleration of the A-share registration system, the number of A-share delisting companies may continue to increase in the future.

　　In Tian Xuan's view, in the short term, after the full registration system is truly implemented, the efficiency of issuance review will be greatly improved, the number of new stocks to be listed will increase sharply, and the trend of A-share delisting will show three characteristics: First, retreat The second is the improvement of the delisting structure, with market-oriented delisting as the mainstay, and mandatory delisting by supervision as a supplement. The two complement each other and form a virtuous circle of “spitting out the old and accepting the new” with the registration system; third, the delisting facilities are sound and the regulatory agency , Government departments, intermediary agencies, etc. coordinate to ensure the steady progress of work before, during and after delisting.

　　In the medium and long term, with the implementation of the registration system, the valuation spread of the primary and secondary markets will be reduced. With the gradual improvement of the delisting system, the delisting process and subsequent links will gradually mature, and the market will be cleared gradually. Normalization, the market will be in a healthy and stable state of operation, the number of "entries" and "exports" of the market tends to be balanced, and the number of listed companies will remain within a certain range.

　　Chen Li also believes that the innovation and perfection of the A-share delisting mechanism will promote listed companies to focus on the development of their main business and reduce the phenomenon of protecting their shells through various means.

At the same time, low-quality companies will be cleared out in a timely manner, which is conducive to promoting the A-share market to give play to the resource allocation mechanism and stable and healthy operations.

　　Regarding the construction of related supporting mechanisms in the future, Tian Xuan said that the current supporting mechanisms are insufficient to protect the rights and interests of investors, and there is no complete mechanism for the survival of listed companies after delisting. Therefore, the next step is to strengthen the new delisting regulations. Implementation efforts, continue to improve the delisting system.

　　Economist Liu Jipeng pointed out that we can learn from the experience of mature securities markets, formulate China's A-share "short selling mechanism" in accordance with relevant laws and regulations, and at the same time improve the supporting mechanism, so that it can give full play to its function of regulating the securities market.

(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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