The new delisting rules will be open for public opinions; multiple delisting systems promote the survival of the fittest in A-share market

category:Finance
 The new delisting rules will be open for public opinions; multiple delisting systems promote the survival of the fittest in A-share market


On November 28, Yan Qingmin, vice chairman of China Securities Regulatory Commission (CSRC), also made a public speech, saying that it was necessary to improve the normalization mechanism of delisting, so as to realize the retreat can be made down and the withdrawal can be stable. To improve the adaptability of Chinas delisting mechanism, it is also necessary to broaden diversified exit channels through restructuring, restructuring and delisting. At the same time, for the black sheep of serious financial fraud and the empty shell zombies who lose the ability of sustainable operation, we should strengthen the rigidity of delisting, and never allow prolonged delay.

The reform of delisting system must match the reform of registration system. The diversified and multi-channel IPO standards of registration system need to be matched with diversified and multi-channel delisting system. The general direction of delisting system reform is also marketization, such as the 1 yuan delisting standard and the market value delisting standard, so as to improve investors risk awareness and let investors vote with their feet. Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology, told first finance and economics that the new delisting system reform, in addition to optimizing the index system, needs to strengthen the supervision of information disclosure, so that fraud can be completely curbed, and the delisting system can be effectively and efficiently implemented.

According to Li Xunlei, chief economist of Zhongtai securities, delisting requirements are simple and clear, and procedures are simplified, which are conducive to promoting delisting, promoting the survival of the fittest in the market, and promoting the standardization of the capital market, which is of far-reaching significance to the A-share market. On the one hand, it can improve the quality of index constituent stocks and promote the index to rise; on the other hand, it can correct the valuation system and prevent the bad currency from driving out the good currency.

Learn from the experience of the delisting reform of the science and technology innovation board and the gem

After the pilot registration system was proposed, the delisting system was also promoted to an important position. Especially this year, the delisting system has become a major reform focus.

In the past two months, the central level has repeatedly mentioned the sound delisting mechanism of listed companies. On November 2, the 16th meeting of the Central Committee for comprehensive deepening reform deliberated and approved the implementation plan for improving the delisting mechanism of listed companies. The plan pointed out that improving the delisting mechanism of listed companies and cracking down on illegal securities activities in accordance with the law are important institutional arrangements for comprehensively deepening the reform of the capital market.

On November 3, the proposal of the CPC Central Committee on formulating the fourteenth five year plan for national economic and social development and the long-term goals for the year 2035 also put forward that the registration system for stock issuance should be fully implemented, a normalized delisting mechanism should be established, and the proportion of direct financing should be increased.

On November 10, the CSRC held a mobilization and deployment meeting for the implementation of the State Councils opinions on further improving the quality of listed companies. At the meeting, it was proposed that the export clearance should be unblocked and the delisting system reform should be implemented.

Under the background of the comprehensive reform of the registration system, we can learn from it. The first finance and economics reporter learned that the new delisting rules will learn from the experience of the reform of the science and technology innovation board and the gem pilot delisting.

In the establishment of the science and technology innovation board in 2019 and the registration system reform of the gem in 2020, the CSRC has made two major arrangements for the delisting system. The first is to improve the delisting standards. It includes multi-dimensional depiction of the basic characteristics of the hollow enterprises in the main business that have lost the ability of sustainable operation, introducing the delisting index of negative deduction of non net profit and operating income of less than 100 million to replace the previous single index of continuous loss delisting; increasing the delisting index of market value, information disclosure or standardized operation with significant defects; retaining non-standard audit opinions and transactions Delisting indicators, etc.

In the past, there were many obstacles in the delisting system, such as the st stock shell trick, the local government to help the poor project as far as possible not to allow it to delist, but in fact did not play a role in protecting the interests of investors. This delisting system reform simplifies the procedures, so that the dying listed companies no longer have the fluke mentality of resuming listing, which is conducive to promoting the survival of the fittest in the market. Li Xunlei told the first financial reporter.

Broadening the channels of delisting and strengthening investor protection

In addition to learning from the experience of the pilot delisting reform of the science and technology innovation board and the growth enterprise market, what other aspects can the new delisting system be improved, or what supporting policies are needed?

In particular, a prerequisite for investors to take the initiative to disclose information and make effective decisions is to improve the quality of supervision and supervision The role of market-oriented delisting standards, such as 1 yuan delisting standard and market value delisting standard.

In addition to strict supervision of delisting, we should also try diversified exit channels. According to the first financial reporter, improving the bankruptcy reorganization system is also a direction for the regulatory authorities to promote diversified delisting. In addition to delisting companies that trigger delisting indicators, they can also delist problematic assets to improve the quality of listed companies.

Recently, the CSRC has made it clear that the exchange should take the main responsibility, strengthen cooperation between the dispatched offices and the local government, resolutely crack down on all kinds of malicious evasion and delisting behaviors, seriously deal with the behavior of resisting supervision by means of inciting and harassing visits, broaden diversified exit channels, fully mobilize the enthusiasm of relevant parties and local governments, and focus on promoting the reorganization of a number of groups, reorganization of a number of groups and the main body A batch of dynamic withdrawal will promote the orderly clearing of the risks of the stock listed companies.

In his speech on November 28, Yan Qingmin said that a few years ago, Chinas capital market was still in its early stage of development, with different understandings in all aspects and imperfect delisting mechanism. From 2001 to 2018, there were only 6 delisting companies on average, with an average annual delisting rate of 0.36%; while the U.S. stock market reached 4%, 10 times that of China. There are two important reasons for the smooth delisting: one is that there are multiple exit channels, compulsory delisting only accounts for 5% of the market exit, and 95% of the market exits through privatization and restructuring; the other is that the judicial relief mechanism such as group litigation is relatively sound, which can effectively protect the legitimate rights and interests of investors.

Implement the new securities law, promote the representative litigation system of insurance institutions to be implemented through typical cases as soon as possible, and realize the dual objectives of clearing the market and protecting investors. Yan Qingmin said.

In addition, Li Xunlei believes that it is necessary to strengthen the risk warning in advance in the supporting system of delisting. Listed companies should fully disclose information so that investors can recognize the risk of delisting of relevant companies earlier, so as to avoid sudden delisting and make investors unprepared.

How does it affect the A-share market?

In the past 30 years in Chinas capital market, as of November 30, this year, there were 4087 A-share listed companies and only 125 delisted companies. Then, if the new delisting system is introduced, how much will the delisting situation of A-share market be improved and how much will it affect the whole stock market?

At present, the A-share market is experiencing rapid expansion under the registration system reform, so the number of delisted companies will also increase significantly. According to the current trend, it is expected that 30 or 50 companies will be delisted in a year under the new delisting system, which should be a normal phenomenon. Dong Dengxin told the first financial reporter.

At the same time, he said, the new delisting system may bring about big in and big out effects. In other words, if the annual IPO number of A-share market is about 300-500 in the future, the number of delisting (including active delisting and compulsory delisting) in a year should be kept at about 100, at least not less than 30 or 50.

From this point of view, the capital market in the future should set off a wave of mergers and acquisitions and privatization. In the overall scale of delisting, the number of delisting through M & A and privatization accounts for almost half of the total delisting, and the number of forced delisting may also account for almost half. In compulsory delisting, half of the companies delisted due to the 1 yuan delisting standard. Dong Dengxin predicted.

In addition to the number of delisting companies will increase, Li Xunlei believes that a new round of delisting system reform will have a profound impact on the A-share market.

He cited the U.S. stock market as an example. One of the reasons for the better performance of the US stock market is that it is based on the elimination of a large number of companies. From 1980 to now, about 18000 companies have been delisted, leaving more than 5000. The constituent stocks of the index are the best. In this case, the index rises more obviously.

On the other hand, Li Xunlei believes that after the completion of the delisting system, the delisting rate has been improved, and the game rules of the A-share market have changed, which is conducive to the improvement of the valuation structure and correction of the valuation system. A scientific valuation system should be a higher premium for companies with strong certainty in the stock market, such as predictable earnings per share, outstanding main business and relatively guaranteed future performance. The valuation level of these companies should be relatively high, and discount can be made for companies with uncertain main business, frequent merger and reorganization, and diversification of main business u3002u201d Li Xunlei specific analysis said. Yan Qingmin also said that only when listed companies have access to and exit from the market and the survival of the fittest can they be free from corruption and the household key will not be rusty; the only in but not out will distort the market valuation system, leading to adverse selection and bad money driving out good money. Source: Chen Hequn, editor in charge of Finance and Economics_ NB12679

On the other hand, Li Xunlei believes that after the completion of the delisting system, the delisting rate has been improved, and the game rules of the A-share market have changed, which is conducive to the improvement of the valuation structure and correction of the valuation system.

A scientific valuation system should be a higher premium for companies with strong certainty in the stock market, such as predictable earnings per share, outstanding main business and relatively guaranteed future performance. The valuation level of these companies should be relatively high, and discount can be made for companies with uncertain main business, frequent merger and reorganization, and diversification of main business u3002u201d Li Xunlei specific analysis said.