Recently, the China Securities Regulatory Commission announced the "Rules for Suspension and Resumption of Stocks of Listed Companies", which clarifies that listed companies shall not abuse the suspension or resumption of trading to damage the legitimate rights and interests of investors.
Suspension and resumption of trading is a normal behavior of listed companies, and its original intention is to prevent major events that are being planned or underway from causing large fluctuations in stock prices, so as to protect the interests of investors.
However, the long-term suspension and resumption of trading has been abused by some listed companies by "taking advantage of loopholes" and has become a "psoriasis" in the A-share market.
For example, when some listed companies encounter stock price changes, especially when the stock price falls continuously, they will announce “the suspension of trading on important matters” and “planning for suspension of trading on major matters”; some “actively cooperate” when the risk of major shareholders’ pledge is exposed, and stop immediately As a result, wait for the market sentiment to warm up; some companies willfully use suspensions to counter takeover bids; some listed companies engage in "flickering reorganization" suspensions, and seek improper personal gain by manipulating suspension and resumption of trading... These abuses of suspension and resumption of trading, Interfering with the continuity and liquidity of market transactions and disrupting the order of the capital market.
In particular, those illegal acts such as manipulating stock prices by suspending trading have not only violated the legitimate rights and interests of investors, but also seriously affected the efficiency of market resource allocation and damaged the international image of the A-share market.
At present, more and more foreign capitals are increasing the allocation of A shares, which puts forward higher requirements for listed companies to regulate governance, etc. In particular, listed companies are required to ensure the liquidity and continuity of their own stock transactions, and effectively safeguard investors' right to know and trading rights. .
Analyzing the abuse of trading suspension and resumption by listed companies, the root cause is that major shareholders and management ignore legal authority, despise investors' rights and interests, speculative behavior is prominent, and there is also insufficient punishment.
The "Rules for Suspension and Resumption of Stocks of Listed Companies" issued and implemented this time clearly states that listed companies shall not abuse the suspension and resumption of trading to damage the legitimate rights and interests of investors.
Once the relevant regulations are violated, the CSRC will investigate and deal with them according to the law, and pursue the legal responsibility of the violations.
By implementing the new regulations, increasing punishment and increasing the cost of illegal activities, companies that abuse the suspension and resumption of trading will not be worth the loss.
This is to create an environment in which listed companies are unwilling to suspend trading "willfully", build a system in which listed companies dare not suspend trading "willfully", and implement an important regulatory practice that listed companies cannot suspend trading "willfully".
For listed companies, they must strictly abide by the law, do not engage in "hedging"-style suspensions, and do not suspend trading in order to fool the stock price.
At the same time, it is also necessary to practice the internal skills of information disclosure, strengthen and improve the management of information disclosure and inside information, and effectively prevent market rumors and stock price changes caused by rumors.
For the majority of investors, it is necessary to pay special attention to the integrity of those companies that abuse the suspension and resumption of listed companies, and maintain due vigilance.