Late in November 16th, there were 2 big news in the A share market.
First, the Shanghai and Shenzhen Stock Exchange has issued a new mandatory delisting rule. Two, the Shenzhen Stock Exchange has launched a mandatory delisting mechanism for Changsheng biology, which will be suspended from next Monday.
The following is Xiaobians interpretation of these two things:
New regulations on mandatory delisting of major offense
The Shanghai and Shenzhen Stock Exchange has made clear the situation of compulsory delisting of major public safety violations, responded to social expectations, and indicated that it will make clear the rules and arrangements to ensure the smooth implementation of the new delisting rules.
4 major illegal delisting cases identified by the new regulation
1, initial listing fraud;
2, restructuring and listing fraud;
3, annual report fraud to avoid delisting;
4, other circumstances identified by the exchange.
The normative logic of major illegal delisting situations emphasized in the new delisting rules includes three aspects.
Firstly, the emergence of major violations of public safety shows that the value orientation of production and operation of listed companies is seriously deviating from their social responsibilities.
Secondly, the major illegal acts of social public security not only damage the interests of investors in capital market, but also directly affect the public interests of the whole society and even the interests of the state, which is not acceptable for the value standard of capital market legislation and supervision.
Thirdly, listed companies are often deprived of the qualifications for production and operation, lose the ability to sustain operation, and objectively should not and can no longer maintain their listing status.
Delisting decisions and implementation procedures under the new regulation:
1, set up the decision-making mechanism of the listing committee.
It is stipulated that the listing committee shall, on the basis of the administrative penalty decision of the relevant administrative organs and the facts ascertained by the effective judgment of the peoples court, consider whether the listed companys behavior seriously affects its listing status, whether it should delist on its implementation of major illegal delisting, make independent professional judgments and form an audit opinion. The relevant deliberation decisions, such as the deliberation time limit of the listing committee, the time limit for issuing the notice of confirmation opinion, putting forward the defense and hearing, and making the delisting decision, are clearly defined.
2, give the parties reasonable relief and relief measures.
It mainly gives listed companies suspected of major illegal delisting the right to apply for hearings, written statements and defenses, and to request review, safeguarding their legitimate procedural rights and guaranteeing the basic rights of the parties.
3, clear the relevant links of major illegal delisting.
That is to say, suspension, delisting risk warning, suspension and termination of listing will shorten the suspension period from one year to six months, thus improving the efficiency of delisting implementation.
Arrangement of new regulations for new and old people
Specifically, prior to the implementation of the new regulation, the listed company has been recognized by the CSRC as constituting a major illegal act or has been transferred to the public security organs according to law, and has been made a decision to terminate the listing, the original rules shall apply.
After the implementation of the new regulations, if a listed company is found to have committed an illegal act by the administrative penalty of the CSRC or the effective judicial judgment, the new regulations shall apply to the suspension or termination of listing of the listed company due to the illegal act, regardless of the time when the illegal act occurs.
Taking the recent individual companies whose disclosure has been transferred to the public security organs according to law as an example, this paper distinguishes the stages of delisting procedure and carries out different treatment.
Firstly, if no other suspension or termination of listing has been made, the suspension of listing will be maintained until the peoples court makes a guilty judgment on the company and takes effect, and the new rules will be used to determine whether it constitutes a major illegal forced delisting.
Secondly, if there is no suspension of listing or termination of listing, the delisting risk warning has been implemented (GEM company announces the suspension of listing risk), and if there is no suspension of listing or termination of listing, the suspension status will be maintained until the peoples court makes a guilty judgment on the company and takes effect, it will be judged whether it constitutes a serious illegal forced delisting situation according to the new rules.
It is worth noting that if a companys stock is forced to delist in accordance with the new regulations, the escape period of 30 trading days will not be repeated, but there are still relevant arrangements for the delisting period.
However, if the public security organ decides not to file or cancel a case, the Peoples Procuratorate decides not to prosecute, and the Peoples Court makes a verdict of innocence, the companys stock can resume normal trading upon the application of the company.
The Shenzhen Stock Exchange will further strengthen the supervision of delisting.
It is noteworthy that late on the 16th night, the article published by the Wechat Public Number of Shenzhen Stock Exchange also mentioned the related work of the Shenzhen Stock Exchange to strengthen the delisting follow-up.
A spokesman for the Shenzhen Stock Exchange said:
In 2017, the Shenzhen Stock Exchange made the decision to terminate the listing of Xintai Electric Stock and smoothly implemented the pre-payment work. Xintai Electric became the first company in China to be forced to withdraw from the stock market due to fraudulent issuance. Since 2018, Jinya Science and Technology and * STBaite, which were transferred by CSRC to the public security organs, have been strong in accordance with the law. The delisting procedure should be restrained and the follow-up arrangements for the transfer of * ST Huaze, which has been suspended from listing, to the public security organs by the CSRC, should be further implemented.
Next step, the Shenzhen Stock Exchange will continue to strictly enforce the delisting system. For companies that should delist, it will resolutely emerge one, delist one, purify the market environment, maintain market order, form a market pattern of orderly advance and retreat, survival of the fittest, and promote the long-term stable and healthy development of the multi-level capital market in Shenzhen.
The Shenzhen Stock Exchange started the delisting of longevity creatures, and identified 4 major events for longevity and delisting.
In addition, the Shenzhen Stock Exchange announced in the evening of the 16th that it had officially launched a compulsory delisting mechanism for major violations of the law against perennial organisms.
In the announcement, the Shenzhen Stock Exchange identified 4 major events for the longevity bio delisting:
1, illegal production of vaccines
On October 16, 2018, the main subsidiary company of Changsheng Biotechnology Co., Ltd. (hereinafter referred to as Changsheng Biology or Company) was decided by the State Drug Administration to revoke the license for drug production because of illegal production of vaccines, and fined 9.1 billion yuan.
2, involving five major safety major violations
The major subsidiaries of Changsheng Biology have serious violations involving national security, public security, ecological security, production safety and public health safety.
3, violation of the Shenzhen Stock Exchange listed companies major violations of compulsory enforcement measures fifth, second
In violation of Article 5, paragraph 2, of Some Opinions on Revising and Improving the Delisting System of Listed Companies and Strictly Implementing the Implementing Measures for Important Illegal and Compulsory Delisting of Listed Companies of CSRC and Shenzhen Stock Exchange:
A listed company or its main subsidiary company is revoked the production and operation license of its main business according to law, or there are other situations in which the legal qualification for continuing production and operation is lost.
4. Violation of the relevant provisions of Article 2 of the Measures for the Implementation of Relisting of Delisting Companies in Shenzhen Stock Exchange (Amended in 2018)?
Violation of the Regulations on the Relisting of Stocks on Shenzhen Stock Exchange (Revised in November 2018), Implementing Measures for the Relisting of Delisting Companies on Shenzhen The relevant provisions of the second article of the circular are:
(1) If a listed company commits fraudulent issuance, illegal disclosure of major information or other major illegal acts that seriously damage the order of the securities market and seriously affect its listing status, its shares shall be terminated from listing;
(2) Listed companies have illegal acts involving national security, public security, ecological security, production safety and public health safety, which seriously damage national interests, social and public interests, or seriously affect the status of listing, and their stocks should be terminated.
To sum up, Changsheng Biology may touch on the situation of major illegal forced delisting, Shenzhen Stock Exchange launched a major illegal delisting mechanism for Changsheng Biology.
At the same time, * ST Changsheng also issued a notice on the evening of 16. According to relevant regulations, Changchun Changsheng has the risk of suspending or terminating its listing because of its illegal activities:
In order to safeguard the interests of investors and prevent abnormal fluctuations in the companys share price, the company applied to Shenzhen Stock Exchange. The companys shares were closed in the morning of November 19, 2018 (Monday).
Longevity creatures have had 7 consecutive trading restrictions.
In November 5th, Changsheng bio resumed its brand, and the stock was changed from ST longevity to *ST longevity.
At the same time, the funds valuation on its biological vaccine is also adjusted. At present, many fund companies, including CITIC Prudential (40.2,?-0.90,-2.19%) fund companies, have issued announcements to adjust the net value of life of their funds to 0 yuan, which means that investors who still hold the shares will inevitably suffer losses.
However, it is noteworthy that since November 8, ST Changsheng has started to rise and fall, and there have been seven stops in a row, with a total turnover of over 1.7 billion yuan.
According to the statistics of Shenzhen Stock Exchange, * ST Changsheng mainly traded with individual investors during the recent continuous rising period, with the proportion of purchases exceeding 97% and the proportion of sells exceeding 90%. Starting from large hot-money investors, small and medium-sized retail investors follow suit. The account holding time before trading volume is relatively short, averaging 1 to 2 days.
And on the 16th evening, the new rules of compulsory delisting were announced. It is conceivable that the mood of retail investors rushing in will be quite complicated...
Source: twenty-first Century economic report editor: Ji Guo Jie _NBJ11143