There are advances and retreats, but running water is not rotten. At present, the registration system is smoothly implemented in the science and technology innovation board and the growth enterprise market, and will soon be launched in the whole market. It is more urgent to start a new round of delisting reform.
There has always been a lot of resistance to delisting because a group of shareholders have gone to zero. An industrial capital investor told first finance and economics that compared with the Hong Kong market, the A-share retail market accounts for a relatively high proportion, which means that many bad companies may have investors to listen to the wind to speculate, and then take the initiative to withdraw from the market by fairyland. It is difficult to form naturally. We must strengthen the rules and take the initiative to get rid of the zombie shell.
Will the investors agree to the delisting of listed companies? In fact, after nearly 30 years of development, shareholders, as a major part of the market, are also tending to be rational.
Start with Pt Narcissus
Throughout the 30 years of A-share market, although there are only more than 100 delisting companies, the process of delisting is fierce and controversial.
At present, among the 125 delisted companies, 53 have been delisted due to losses for more than three consecutive years, accounting for nearly half of the total; 35 companies have been delisted due to merger and acquisition; 22 companies have been delisted due to face value and major illegal delisting; 9 have been delisted due to privatization; and 6 have not disclosed their regular reports after suspension of listing.
On April 23, 2001, Pt Narcissus shares were terminated from listing on Shanghai Stock Exchange. It became the first delisted stock in A-share market. The situation of only entering but not going out in the A-share market for more than ten years has finally been broken.
According to the CSRC at that time, a number of excellent enterprises have become the new force to promote the development of the national economy through the incubation effect of the securities market, and their ability to participate in the international market competition has been significantly enhanced. However, in the increasingly fierce market competition, some listed companies failed to adjust their business strategies and management concepts in time, and gradually lost their business advantages at the beginning of listing, resulting in the dilemma of continuous losses for many years, and no longer have the legal conditions for continuous listing.
Let these companies withdraw from the stock market to realize the survival of the fittest in the stock market. According to the CSRC, the withdrawal of Pt Narcissus shows that the withdrawal mechanism of Chinas securities market has begun to be established, which will be conducive to the improvement of the overall quality of Chinas securities market and the stable and healthy development of the securities market.
The goal is clear, but it is not easy to promote.
The delisting has brought great impact on investors. Many investors even took the Shanghai Stock Exchange and the CSRC to court, saying that small and medium-sized investors can not bear market risks and sudden policy risks at the same time. It can be seen that the delisting system of a shares is difficult to take effect.
Today, Pt Narcissus, which is still listed on the old third board, has a stock price of only 2 yuan / share and no trading volume. The company still has more than 10000 shareholders, but the number of employees has been reduced from 400 to only 16.
What is the root cause of immobility
Starting from Pt Narcissus, the delisting system of A-share market has entered a fast track of continuous creation and improvement. From the optimization of financial indicators, to the increase of major illegal delisting indicators, to the simplification of delisting procedures, and to the multiple delisting of composite indicators, the desilting work of delisted exports has been advancing hard.
In 2012, the Shanghai and Shenzhen stock exchanges started to improve the delisting system. Companies with negative net assets for three consecutive years, or operating income less than 10 million yuan for three consecutive years, or closing price lower than the par value of shares for 20 consecutive trading days, will be delisted.
In 2014, China Securities Regulatory Commission (CSRC) issued some opinions on reform, improvement and strict implementation of delisting system of listed companies (hereinafter referred to as several opinions), which is known as the strictest delisting new regulation in history, adding the mandatory delisting system for major illegal companies such as fraudulent issuance and illegal disclosure of major information.
In 2018, China Securities Regulatory Commission (CSRC) announced to revise the several opinions to strengthen the responsibility of decision-makers of Shanghai and Shenzhen stock exchanges in implementing compulsory delisting of major illegal companies.
In 2019, the science and technology innovation board pilot registration system, delisting system optimization. On the basis of compulsory delisting of major illegal categories, delisting of market indicators and financial indicators, compliance delisting indicators such as information disclosure or major defects in standardized operation shall be added; suspension of listing and resumption of listing procedures shall be cancelled, and no special re listing link shall be set.
In 2020, the new securities law will come into effect, and the suspension of listing will be abolished for the first time, and there will no longer be a resumption of listing game rules in the A-share market.
In April this year, the reform of the registration system of the gem started. Like the science and technology innovation board, the new delisting rules of gem have made compulsory delisting provisions from four aspects of transaction, finance, regulation and major violations, set up delisting risk warning and * ST system, and optimize the disclosure time and frequency of risk warning announcement for various delisting situations according to the difference of risk degree.
In the view of the investors mentioned above, 4000 companies have been listed only after 30 years of A-share development. After the registration system, there may be 6000 or 10000 companies, but these companies are still core resources. From his point of view, poor business operation, poor performance and even fraud will not make the market value of the enterprise return to zero, and the shell value will still exist for a long time. Only when the enterprise really wants to withdraw from the market, will the market value be really hit to the bottom.
But even so, the number of delisting companies is still very small.
First of all, shareholders are reluctant to withdraw, because delisting means that there is no liquidity, and there is a high probability that they will lose the opportunity to carry out capital operation and merger and reorganization; secondly, local governments and competent departments are also reluctant to withdraw, especially in some areas where there are few listed companies, so the task of covering is to protect the market; thirdly, investors in the secondary market are also reluctant to withdraw, and delisting means that the return on investment will be greatly reduced To zero. In addition, regulators are more cautious about delisting because of concerns about investor sentiment in the secondary market.
We have been in contact with some Western companies. At the end of the year, even the government departments will come out to cover up, such as giving one-time subsidies to help listed companies avoid financial indicators and delisting. The source told reporters that the number of Listed Companies in some areas is in the KPI assessment indicators of regulatory authorities, and many of them are state-owned enterprises. Delisting is not good, and the burden will be heavier after delisting.
Statistics from the first finance and economics reporter found that the provinces with the largest number of listed companies are also the provinces with the largest number of delisted companies.
Another province with more than 10 delisted companies is Liaoning Province, which has delisted 15 companies, but there are only 74 listed companies at present.
Improve the back off ecology
What does delisting mean to a listed company? Take the recently delisted storm Technology (300431. SZ) as an example, we can see the great changes before and after the company.
In the first half of 2015, the stock price of windstorm Technology (300431. SZ) had 36 consecutive price limits, with an upward movement of 248 yuan / share, and a market value of nearly 30 billion yuan. When Feng Xin, CEO of the company, was interviewed by first finance and economics, he was pleased to say that shareholders know more about the storm than I imagined..
In September 2020, the storm entered the delisting period and was delisted by Shenzhen Stock Exchange on November 10. The companys opening reference price on the first day of delisting consolidation period is only 1.48 yuan / share, which is almost zero compared with the peak of 200 yuan.
Such a shock to the secondary market investors is not small. In this regard, industry insiders believe that while improving the delisting indicators, we should also improve the retreat system, provide a gradient undertaking mechanism, and smooth the price impact brought by delisting.
At present, there are three main aspects of the delisting supporting system: the first is the old three board undertaking listing transfer; the second is the re listing system after delisting; the third is the investor litigation compensation system.
However, due to the small number of delisting companies and the poor quality of companies, the old three board lacks liquidity and attraction.
In addition, the re listing system is an important supporting system in the delisting system. The system was established in the delisting system reform of Shanghai and Shenzhen Stock Exchange in 2012 and revised in 2014. Its main goal is to establish a market mechanism that can go up and down, and provide a re listing path for delisted companies after their sustainable operation ability and corporate governance level are significantly improved.
However, at present, there are not many cases of re listing through this system.
The re listing of the company on the Shanghai Stock Exchange (SSE) on April, 2018 was the first time the company submitted a re listing application to the Shanghai oil company. In January of the following year, St Changyou (601975.sh, now China Merchants Nanyou) was re listed on the Shanghai Stock Exchange. The opening reference price on the first day of listing was the closing price of the company on the last trading day (February 27, 2017) of the national small and medium-sized enterprise share transfer system, i.e., 4.31 yuan / share. This was 4.19 times higher than that of 0.83 yuan / share when st long oil was delisted.
In March this year, Sinochem heavy equipment Co., Ltd. (the original * ST secondary) was approved to be re listed, becoming the second company in the A-share market to apply for re listing after the oil transportation of Changhang.
In fact, the reporter found in the interview that the improvement of the securities litigation system is an important reason why investors are more indifferent to delisting.
For example, the aforementioned investors told reporters that if a listed company delisted due to violations of laws and regulations, retail investors can take class action, and institutional investors with a large proportion of shares can directly Sue.
Moreover, in his opinion, although the enterprises want to withdraw from the market, it does not mean that they can not get money in a lawsuit.
If an enterprise wants to withdraw from the market, the boss may not have no money. There are two reasons. First, the companies we invest in are certainly not companies with poor performance in the industry. This is not the business of professional institutional investors. If the companies we invest in withdraw from the market, it is mostly because of financial fraud, illegal guarantee, fund occupation and other illegal issues; second, the actual controller of the company risks the legal risk to make such occupation and guarantee, which must be for some external purpose, and most of them have assets. The person told reporters that hollowing out listed companies, assets to a place outside the body.
When a company delisted, the actual controllers value may not return to zero. Unless you go gambling, its not He added.
An entrepreneur of a technology company preparing to go public told CFI that the possibility of delisting had been considered before the company was listed. One is that if you cant get out of the market, you dont have a face to depend on. Back, and then adjust the direction of entrepreneurship. The other is to do too well, privatization, delisting, and several entrepreneurs sharing money. She said that many continuous entrepreneurs are also continuous losers. If it is difficult for a platform to make a comeback, it is better to change the track and make a new one. There is no historical burden and the probability of success is higher. From the examination and approval system to the registration system, the A-share market has gone for 30 years. Along with the reform of delisting system, it is making great strides towards just quitting. At present, a new round of delisting regulations will be issued soon. Whether the export of Chinas securities market can be really activated remains to be seen. Source of this article: Guo Chenqi, editor in charge of first finance and Economics_ NBJ9931
An entrepreneur of a technology company preparing to go public told CFI that the possibility of delisting had been considered before the company was listed.
One is that if you cant get out of the market, you dont have a face to depend on. Back, and then adjust the direction of entrepreneurship. The other is to do too well, privatization, delisting, and several entrepreneurs sharing money. She said that many continuous entrepreneurs are also continuous losers. If it is difficult for a platform to make a comeback, it is better to change the track and make a new one. There is no historical burden and the probability of success is higher.
From the examination and approval system to the registration system, the A-share market has gone for 30 years. Along with the reform of delisting system, it is making great strides towards just quitting. At present, a new round of delisting regulations will be issued soon. Whether the export of Chinas securities market can be really activated remains to be seen.