Delisting! Delisting! Delisting! Recently, A-share listed companies have delisted intensively, including many well-known companies.
Since May, nearly 40 listed companies have been delisted
According to incomplete statistics from China News Finance reporters, since May, as of June 10, 37 companies have been delisted A-share listed companies receive a decision to terminate the listing of their stocks. Another 25 listed companies issued risk warnings that their stocks may be terminated from listing.
Some listed companies have received announcements of their decision to terminate the listing of their stocks.
Although the annual report disclosure period is the peak period for delisting of listed companies, such intensive delistings in recent times are rare.
After sorting through these companies that have pressed the "exit button", many of them were once household names, such as XomoChina Electronics.
“With Xomoco Plasma, I really want to live another 500 years.” The Xomoco TV set endorsed by the well-known actor Chen Daoming was once the “three major items” in many people’s homes.
XomoChina Electronics, founded in 1985, was listed on the Shanghai Stock Exchange in 1995. Public information shows that XomoChina Electronics is the manufacturer of China's first plasma TV and the first company in China to transform from CRT TV (old-fashioned picture tube TV) to flat-panel TV. It is one of the largest color TV export companies in China. It leaves behind color TV brands such as TCL, Skyworth, Changhong, Haier, Hisense, and Konka.
However, after 27 years of ups and downs in the A-share market, during which time XomoChina Electronics was delisted.
When I was a child, I heard the advertising slogan "Cody glutinous rice balls are reunited", and when I grew up, I drank the Internet celebrity "Little White Milk". The "post-90s" who grew up in Henan are no strangers to Cody.
Once upon a time, Zhang Qinghai, the founder of Kedi Dairy, publicly stated that he would build Kedi Dairy into a "Central Dairy Industry Aircraft Carrier" comparable to Mengniu and Yili. In recent years, Kedi Dairy has experienced operating difficulties, wage arrears, financial constraints and other problems. Zhang Qinghai was also banned from the securities market for 10 years for financial fraud. After local state-owned assets entered the market but failed to save the market, now they can only delist sadly.
In addition to the former "color TV overlord" and "dairy giant", "film and television dark horse" Contemporary Oriental, "security giant" Dongfang Wangli, "battery giant" Mengshi Technology, "artificial diamond king" Yu Diamond, 34-year-old real estate companies such as LVGEM Holdings cannot escape the fate of delisting.
Under the strictest "new delisting regulations", company delisting may become the norm
In the past, the number of delisted companies was not large. Even in 2021, the number of delisted companies is still There are only more than 20 companies, why are there so many this year?
In this regard, the market believes that the large number of companies delisting may be related to the increasing power of the "new delisting regulations" that were implemented at the end of 2020.
On December 31, 2020, the Shanghai and Shenzhen Stock Exchanges officially released business rules related to delisting, improving the four categories of mandatory delisting standards: financial, trading, regulatory, and major violations.
In addition to the face value delisting standard being clearly "1 yuan delisting", the total market value has been less than RMB 300 million for 20 consecutive trading days; delisting risk warning stocks have been issued non-standard audit reports; information disclosure, There were major flaws in standardized operations and they refused to correct them; they had made financial fraud for two consecutive years, and the total amount of false records in revenue, net profit, profits, and balance sheets amounted to more than 500 million yuan, and exceeded 50% of the total of the corresponding accounts in the two years. The occurrence of these situations will trigger the criteria for delisting.
“In the past, most delistings were done after the disclosure of annual reports, and only a few companies delisted each year.” Dong Dengxin, director of the Institute of Financial Securities at Wuhan University of Science and Technology, told Sino-Singapore Finance reporters, but in the future, delistings will It will be normalized and balanced, which means it may be delisted throughout the year. In addition to annual reports, semi-annual reports, etc., companies may also be driven out of the market by the "1 yuan delisting" standard. Investors vote with their "feet", and delisting will be more efficient.
According to data released by the Shanghai Stock Exchange, after the disclosure of the 2020 annual report, a total of 42 companies in the Shanghai Stock Exchange were issued delisting risk warnings, 25 of which were implemented because they encountered new financial delisting indicators. *ST.
Since then, the delisting mechanism has continued to be “upgraded.”
In November 2021, the Shanghai and Shenzhen Stock Exchanges issued multiple guidelines at the end of the year to accurately crack down on "shell companies"; at the end of April this year, the China Securities Regulatory Commission issued the "Guiding Opinions on Improving the Post-Delisting Supervision of Listed Companies" to further strengthen the supervision of delisted companies. Supervision should guide enterprises with poor quality to exit the market through market-oriented channels and promote the complete elimination of risks.
In Dong Dengxin’s view, the U.S. stock market is characterized by “big ins and big outs.” The number of listed companies in the A-share market is approaching 5,000, so there should be advances and retreats to achieve a virtuous cycle. "In the future, it will be normal for 300 to 500 companies to IPO and 30 to 50 companies to delist every year. The A-share market will achieve 'in and out', and the pattern of survival of the fittest and 'big waves washing away the sand' will gradually take shape."