A-share survival of the fittest ecology accelerates formation

  On June 2, the Shenzhen Stock Exchange issued an announcement to terminate the three companies of Bangxun Technology Co., Ltd. (*ST Bangxun), Contemporary Oriental Investment Co., Ltd. (*ST Contemporary), and Julong Co., Ltd. (*ST Julong). The company's stock is listed.

This year is the second year that the new delisting regulations have been implemented, and the effect of the policy has been concentrated.

As of the end of May, at least 40 listed companies have been terminated from listing, the delisting of A-shares is gradually normalized, and the market ecology of entering and exiting, survival of the fittest is accelerating.

  The effect of retreat should be obvious

  The delisting system is one of the basic systems of the capital market.

A stable and healthy development of the capital market will inevitably require smooth entry and exit, forming a market ecology with a virtuous cycle of entry and exit.

  "Most of the companies that have been delisted since the beginning of this year were delisted because they continuously hit financial delisting indicators, and the new delisting regulations 'should be fully withdrawn' have shown their effect." Xia Fanjie, a strategist at China Securities Investment Securities, said that before this year The number of companies delisted in five months is close to the sum of companies delisted in the past three years.

Compared with the past, the diversified delisting standards at this stage have improved the delisting process, and have stricter requirements for listed companies, which can further identify low-quality companies.

  Before the introduction of the new delisting regulations, A-shares have been facing the problem of "difficulty in delisting". The number of delistings is small and the force of forced delisting is small. Some companies that have lost sustainable profitability have avoided delisting through financial adjustments.

"Revising and strictly implementing the compulsory delisting system can improve the quality of information disclosure by listed companies, crack down on financially fraudulent companies, reduce the value of 'shell' companies, reduce the occupation of market resources, reduce speculation on company restructuring, and maintain the stability and efficiency of the capital market." Xia Fanjie said.

  Dong Zhongyun, chief economist of AVIC Securities, believes that since the implementation of the new delisting regulations, various types of delisting cases have continued to increase, and the diversified delisting standards are the result of the continuous optimization of the system. However, compared with overseas mature markets, the delisting rate of A shares is still Relatively low, with the continuous improvement of the delisting system in the future, the diversified delisting standards will continue to play a role, helping the market to achieve “delisting when it should be withdrawn” and enhancing the efficiency of market resource allocation.

  Li Qiusuo, managing director of the research department of CICC, believes that the significant increase in the number of A-share delisting companies since the beginning of this year reflects to a certain extent that the current delisting standards have achieved good expected results, but there is still room for improvement in the future.

For example, to further improve the mechanism construction, enhance the willingness of enterprises to take the initiative to delist, and further strengthen the punishment of financial fraud and other violations of laws and regulations.

  Escort the registration system reform

  The delisting system is an important supporting system for the implementation of the registration system, and plays an important role in ensuring the steady advancement of the comprehensive registration system. Only by truly solving the problem of "exit" can the function of optimizing resource allocation be fully reflected.

  Li Qiusuo believes that the implementation of the registration system means that the market needs to check the quality of its operation after listing. Strict implementation of the delisting system will help eliminate low-quality companies, increase the proportion of high-quality companies in listed companies, and strengthen the market’s function of survival of the fittest. An important basis for the improvement of the system.

  At present, the establishment of the Science and Technology Innovation Board and the pilot registration system and the ChiNext reform and pilot registration system have been smoothly implemented.

While expanding the front-end entrance, it is urgent to speed up the smooth export. This is not only an important institutional arrangement to resolve the existing risks of listed companies and maintain "zero tolerance" for seriously untrustworthy entities, but also to improve the quality of listed companies, play a decisive role in market allocation of resources, and optimize the market. It is an inevitable requirement for ecology and protecting the legitimate rights and interests of investors.

  "Under the expectation of the full implementation of the stock issuance registration system, the diversified delisting standards and the normalized delisting mechanism are gradually shaping a new ecological environment in the market, promoting the clearance of risky companies, speeding up the metabolism of listed companies, and forming a virtuous cycle mechanism of survival of the fittest. , enhance the resource allocation capacity of the capital market, and ensure the stable and healthy operation of my country's capital market." Dong Zhongyun said.

  In order to meet the requirements of the registration system reform and normalized delisting, and further improve the supervision of listed companies after delisting, the China Securities Regulatory Commission previously issued the "Guiding Opinions on Improving the Supervision of Listed Companies After Delisting", which clarified the delisting supervision work. Basic principles, strengthen the connection of delisting procedures, optimize the continuous supervision system, improve the risk prevention mechanism, and improve the supervision system, etc.

  The relevant person in charge of the China Securities Regulatory Commission stated that the "Guiding Opinions" are based on the implementation of the basic requirements of the "Securities Law", and better ensure the smooth implementation of normalized delisting. The principle of supervision, prevention of risks, and formation of joint forces” optimizes and improves the blocking points and risk points existing in the current practice.

  Li Qiusuo believes that the "Guiding Opinions" will further ensure the smooth implementation of the delisting system and help protect the basic rights of investors.

With the improvement of the delisting supporting system, the realization of normalized delisting will be accelerated, promoting the formation of a good ecology of "in and out, both in and out", laying the foundation for the reform of the registration system in the whole market.

  Protect the legitimate rights and interests of investors

  As an important participant in my country's capital market, small and medium investors are often in a weak position in terms of information, professional knowledge, and capital, and their legitimate rights and interests are easily damaged during the delisting process.

Therefore, how to further protect the legitimate rights and interests of small and medium investors has always been one of the priorities for the regulators to do delisting work.

  During this round of reform of the delisting system, the regulatory authorities have specially improved the information disclosure arrangements for delisting risk companies to provide investors with more effective information and reasonable expectations for decision-making. Special trading arrangements such as quotation and buying restrictions were introduced; investor education in the process of delisting was further strengthened, and investors were guided to establish a rational investment awareness.

  It is worth noting that, despite the fact that companies that hit financial delisting indicators have issued delisting risk warnings many times this year, and the exchanges have issued public inquiries and media questions have also issued risk signals, there are still some investors who know that *ST stocks are very risky. , but with a gamble mentality, after the company prompted the risk of delisting, it still bought a large number of stocks.

This shows that education still has a long way to go to guide investors to focus on value investing.

  Li Qiusuo believes that at this stage, it is necessary to continue to strengthen investor education, so that investors can have a deeper understanding of the market's delisting rules, have a better understanding of the risks that delisting may bring, and actively avoid those with greater delisting risks. company.

On the one hand, as the "first responsible person" for their own wealth, the majority of investors need to truly establish the concept of rational investment, keep the "money bag", and avoid irrational investment behavior; on the other hand, it is necessary to advocate rational investment and value investment. concept to form a healthy investment culture.

  In addition, in the context of the normalization of delisting, it is necessary for investors to understand the relevant arrangements for the protection of their own rights and interests, exercise their rights with knowledge, and protect their legitimate rights and interests in a timely and effective manner.

  "With the release and implementation of the new Securities Law and the Criminal Law Amendment (11), and the implementation of the rules of the representative litigation system for securities disputes, the securities investor protection system and civil compensation mechanism have been further improved." Xia Fanjie said, involving fraudulent issuance, financial If a listed company that commits major violations of laws and regulations such as fraud is delisted, investors can protect it through judicial channels such as paying in advance, ordering repurchase, or through separate lawsuits, joint lawsuits, applying for the application of the model judgment mechanism, ordinary representative lawsuits and special representative lawsuits. own legitimate rights and interests.