China News Service, Beijing, May 19 (Reporter Chen Kangliang) As the new delisting regulations known as the "strictest in history" gradually take effect, China's A-shares seem to be accelerating the elimination of inferior listed companies, and many companies are facing forced risk of delisting.

　　On the 18th, *ST Huaxun and *ST Yijian issued an announcement saying that the company received the decision to terminate the listing of the stock exchange, and the company's stock will enter the delisting period from May 26, and the last trading date is expected to be June 16. .

　　Among them, *ST Huaxun’s audited net profit in 2020 was negative and its operating income was less than 100 million yuan (RMB, the same below), the audited net assets at the end of the period were negative, and the 2020 annual financial accounting report was issued. Forcibly delisted due to the audit report that cannot express an opinion; *ST Yijian was forcibly delisted due to the fact that the audited net assets at the end of the 2020 were negative and the financial accounting report was issued an audit report that could not express an opinion.

　　On the previous day, six A-share listed companies, including *ST Youjiu, successively issued announcements saying that the exchange has decided to terminate the listing of the company's stocks and will enter the delisting period from May 25. The expected final trading date is June 15.

According to the announcement, the above-mentioned six companies were all forced to delist because they hit the financial delisting indicators in the new delisting regulations.

　　In December 2020, the Shanghai Stock Exchange and the Shenzhen Stock Exchange issued the "New Regulations for Delisting" to comprehensively improve delisting standards, simplify delisting procedures, and strictly supervise delisting.

Among them, the new regulations cancel the original single net profit and operating income indicators, and add a new combined financial indicator that the lower of the net profit before and after deducting non-recurring profits and losses is negative and the operating income is less than RMB 100 million.

In April 2022, in order to meet the requirements of the registration system reform and normalized delisting, and to further improve the post-delisting supervision of listed companies, the China Securities Regulatory Commission issued the "Guiding Opinions on Improving the Post-delisting Supervision of Listed Companies".

　　Dong Dengxin, director of the Institute of Finance and Securities at Wuhan University of Science and Technology, said that under the implementation of the new delisting regulations, the delisting efficiency of the A-share market has been greatly improved, the delisting cycle has been shortened, and the market ecology has been optimized.

Inferior enterprises will be effectively cleared, and investors' rights and interests will be better protected, thus laying a foundation for the optimal allocation of market resources and the establishment of a market environment for the survival of the fittest, which is more conducive to the role of the capital market in serving the real economy.

　　According to media statistics, as of May 18, a total of 45 companies in Shanghai and Shenzhen have been delisted this year, and the number has reached a new high.

Among them, up to 90% of the companies have encountered financial delisting.

　　According to Cheng Xiang, an analyst at Shenwan Hongyuan, in general, the number of A-share delisted companies this year has hit a record high, a normalized delisting mechanism is taking shape, and the concept of "retreat should all be withdrawn" has gradually been fully recognized. The new market ecology of survival of the fittest will be gradually built.

Referring to the U.S. stock market, between 1990 and 2000, there were nearly 6,500 IPO (initial public offering) companies on the New York Stock Exchange and Nasdaq, of which only 1,180 and nearly 5,300 companies still existed as of 2020. The company has been delisted, with an overall delisting rate of 82%.

Only the survival of the fittest can form a healthy endogenous cycle in the capital market.

　　In this regard, Guotai Junan analyst Wang Zhengzhi also agrees.

Wang Zhengzhi said that after the introduction of the new delisting regulations at the end of 2020, the delisting speed of A shares has increased significantly, much higher than the previous average of 6 delistings from 1999 to 2019, and the metabolism of A shares has accelerated.

A smoother delisting system is an important supporting measure for the smooth implementation of the comprehensive registration system, which can alleviate the pressure of market expansion under the registration system, and at the same time achieve a dynamic balance in the number of A-share listings, and better leverage the resource allocation function of the capital market.

Under the protection of the normalized delisting system, the implementation of the comprehensive registration system for A shares can be expected.

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