Withdrawal of 5 A-share listed companies during the year and 3 touched the red line of denomination delisting

 Withdrawal of 5 A-share listed companies during the year and 3 touched the red line of denomination delisting

Specifically, on October 10, the Shenzhen Stock Exchange announced that from August 15 to September 11, 2019, the daily closing price of the shares of Yinji Entertainment Media Co., Ltd. for 20 consecutive trading days was lower than the par value of the shares (1 yuan). According to the regulations and the review opinions of the Listing Committee of Shenzhen Stock Exchange, on October 10, 2019, it was decided to terminate the listing of the companys shares and enter the delisting consolidation period from October 18, 2019. The delisting period is 30 trading days, and the next trading day after the expiration of the delisting period is the delisting of the companys shares.

This means that * ST Yinji will become the fourth stock with delisted face value after Zhonghong, faying Nongmu and Huaxin International. In addition, * ST shares were suspended for 20 consecutive trading days with a par value of less than 1 yuan from September 20, and are still waiting for the stock exchange to make a decision to terminate the listing.

In this regard, Xia Fengguang, manager of private placement platoon fund, told Securities Daily that denomination delisting is a part of delisting system and a reflection of the deepening and perfection of delisting mechanism. This years increase in denomination delisting stocks can alarm listed companies keen on speculation and high transfer.

It is noteworthy that on October 8, the Shenzhen Stock Exchange decided to terminate the listing of * ST Changsheng stock. * ST Changsheng has thus become the first major illegal forced delisting stock in A-share market.

Xia Fengguang believes that both denomination delisting and major illegal forced delisting are basic systems of capital market, which can promote capital market to play the role of optimizing resource allocation and eliminating the fittest and the fittest. By institutional means, eliminating some poor enterprises can more effectively guide capital into high-quality enterprises and play the essential function of financial market. At the same time, the improvement of delisting system is also conducive to guiding investment orientation to value investment.

The diversification of delisting forms is undoubtedly the manifestation of the establishment and perfection of delisting system. While realizing diversification of delisting forms according to market changes, it is suggested that supervisors should strengthen supervision over information disclosure of listed companies and find out the possible causes of delisting in advance, so as to better protect the interests of investors, especially small and medium investors. Gu Huijun said.

Source: Liable Editor of Securities Daily: Yang Qian_NF4425