Help the superior and limit the inferior! The delisting system is playing a ＂purifier＂ role in the A-share market.

　　The essence of the reform of registration system is to hand over the right of choice to the market, strengthen market constraints and rule of law constraints, and improve the convenience of investment and financing. With the end of the 2022 annual report disclosure season, a number of listed companies will withdraw from the A-share market. According to incomplete statistics, since the beginning of this year, the number of A-share delisted companies has reached more than 30.

　　Insiders pointed out that the delisting system is an important supporting institutional arrangement for the implementation of the registration system. The regulatory authorities will further improve the delisting mechanism, improve the delisting standards and simplify the delisting process, which will help to create a good A-share market ecology under the comprehensive registration system, better protect the legitimate rights and interests of investors and provide a stage for the high-quality development of more high-quality enterprises.

　　Metabolism and delisting efficiency are improved.

　　At the end of 2020, in order to implement the Implementation Plan for Improving the delisting mechanism of listed companies, which was decided and deployed by the 16th meeting of the Central Committee for Deep Reform, the relevant departments formulated and formed four types of mandatory delisting indicators, such as trading, finance, regulation and major violations, and incorporated them into the new delisting rules. Nowadays, the delisting system is constantly playing the role of market "purifier".

　　According to the information released by Shanghai Stock Exchange, since the beginning of this year, 12 companies on the main board of Shanghai Stock Exchange have been locked out of listing, and 17 companies have been warned of delisting risks. The diversified delisting system has shown its power, delisting has gradually become normal, and the mechanism of survival of the fittest has become more stable.

　　According to the data of Shenzhen Stock Exchange, in 2022, a total of 24 companies in Shenzhen were forced to delist, and the number of delisted companies was close to the sum of the past three years. As of April 30, 2023, Shenzhen identified 20 delisting companies, the number of which was basically the same as that of the previous year, and the normalized delisting mechanism operated in an orderly manner.

　　So, what kind of companies will withdraw from the A-share market?

　　Some are difficult to win the favor of investors. Not long ago, the daily closing price of *ST Xiyuan shares for 20 consecutive trading days was lower than that of RMB 1 yuan, which touched the conditions for termination of listing. Behind the delisting of transactions is the deterioration of business conditions. Relevant reports show that *ST Xiyuan’s main business is missing, its operation is stagnant, its net assets are negative, its large debts are unable to repay, its major assets and subsidiaries’ equity are frozen by the judiciary, and there are many major uncertainties related to going concern.

　　Some information disclosure does not conform to the norms. In the audit report issued for the future of *ST, Asia Pacific (Group) Certified Public Accountants (special general partnership) said frankly: "We can’t obtain the upstream and downstream penetration data of customers and suppliers related to coal trade, the entry and exit data and logistics data of original suppliers and end users, and we can’t verify the authenticity and accuracy of income, and we can’t verify the authenticity, accuracy and recoverability of accounts receivable generated by coal trade. Due to the above restrictions on the audit scope, we failed to implement the necessary audit procedures to obtain sufficient and appropriate evidence for expressing opinions. "

　　Some of the main business income is lower than the listing requirements. *ST Shennan disclosed in the announcement that the company’s net profit before and after deducting non-recurring gains and losses in 2021 was negative, and the operating income after deducting business income unrelated to the main business and income without commercial substance was less than 100 million yuan. In 2022, the company’s audited net profit was negative and its operating income was less than 100 million yuan. This situation touches on the relevant provisions of the listing rules of Shenzhen Stock Exchange on the termination of listing.

　　There are also false records in the annual reports of listed companies for many years, and the actual controller was investigated by the Securities and Futures Commission for alleged information disclosure violations. These triggered the relevant provisions of "mandatory delisting for major violations".

　　"The delisting system is an important basic system of the capital market. Under the background of comprehensive registration system, timely realize the ‘ Jin ’ ‘ with the problem enterprise; Back ’ It is conducive to shaping a healthy and upward capital market atmosphere and better protecting the rights and interests of investors. " Ceng Gang, director of Shanghai Finance and Development Laboratory, told this reporter.

　　Serve entities and save financing resources.

　　Economic activity is a dynamic cycle process, and realizing a virtuous cycle of savings and investment is the most basic and important part. The data shows that from 2017 to 2021, the initial public offering (IPO) and refinancing amount totaled 5.2 trillion yuan, providing efficient financial support for strategic emerging industries and a large number of high-quality enterprises.

　　— — The delisting system plays a better role and can form a positive guide to the market.

　　According to Wang Yi, chief strategy researcher of Huatai Securities Research Institute, since the implementation of the new delisting rules, A shares have gradually formed a diversified delisting mechanism and played a role as a "purifier". On the issuing side, the new regulations have successfully cracked down on the malicious behavior of shell companies to avoid delisting through stricter financial audit. At the same time, the period from identification to delisting of shell companies will be shortened to two fiscal years to speed up the liquidation of problem companies. On the investment side, under the clear expectation of "all should be retired", the speculative mentality of companies with small market value and poor performance has been effectively curbed, and the risk events of listed companies have been paid more attention to, and the investment concept has become more mature.

　　"Relevant data show that since the implementation of the new round of delisting reform on December 31, 2020, the pace of delisting has obviously accelerated. In 2021, 17 companies were forced to withdraw from the market, and in 2022, 42 companies were forced to withdraw from the market. The number of delisting companies in these two years accounted for 40% of the total number of delisting companies in the past 30 years." Wang Yi told this reporter that the withdrawal of problem companies means that more funds will be invested in high-quality companies, and the rate of return on irrational investment will be further reduced, which is conducive to guiding the whole market to form the concept of value investment.

　　— — The delisting system plays a better role and can allocate financial resources efficiently.

　　Zhao Xijun, co-dean of China Capital Market Research Institute of Renmin University of China, said in an interview with this reporter that delisting companies generally have problems such as poor operating conditions, false financial data, and doubtful ability to continue operations.

　　Zhao Xijun believes that the comprehensive registration system has opened the door to accelerated development for more high-quality enterprises. The timely withdrawal of "sick" enterprises from the capital market will play a warning role for the whole market, so that listed and unlisted enterprises can strengthen their awareness of legal compliance and dispel the lucky psychology of "circling money on the market" and "getting something for nothing", thus purifying the market ecology and improving the overall quality of listed companies. Not only that, the delisting system will play the role of "purifier", and it will also enable enterprises that really do business in a down-to-earth manner to obtain a good direct financing environment, thus driving the development of the industry and even the upstream and downstream industries, and realizing the ultimate goal of the capital market to better serve the high-quality development of the real economy.

　　"The delisting system, the issuance system, the trust system and the trading system together constitute the basic system of the capital market. To ensure the good operation of the delisting system is to better allocate valuable financial resources to the places that enterprises really need and promote them to create greater value. " Zhao Xijun said.

　　Support the superior and limit the inferior, and the supervision is not loose.

　　Promoting the high-quality development of listed companies is a complex systematic project and a long-term and arduous task. The CSRC stressed that it is necessary to adhere to the supervision orientation of supporting the superior and limiting the inferior, and further support the head enterprises with outstanding main business and strong competitiveness to become superior and strong, and play a leading role in demonstration; For those who unilaterally pursue diversified development, strictly supervise their mergers and acquisitions and financing behavior; For "shell" and "zombie" enterprises whose main business is shrinking and they do not have the ability to continue to operate, the compulsory delisting system will be strictly implemented and the liquidation will be resolutely promoted.

　　What are the new highlights and trends in the implementation of delisting system? The reporter interviewed Shanghai Stock Exchange and Shenzhen Stock Exchange respectively.

　　According to the relevant person in charge of the Shanghai Stock Exchange, the Shanghai Stock Exchange has carefully formulated and implemented the Work Plan for Auditing the 2022 Annual Report of Venture Companies in Shanghai Stock Exchange, and promoted the supervision of venture companies in stages and with emphasis according to the principle of "moving forward, grasping early and grasping small". On the one hand, through supervision means such as inquiry, interview and on-site inspection, we will crack down on evading delisting; On the other hand, according to the regulations, we will push forward the major illegal delisting of companies such as *ST Amethyst and *ST Zeda as soon as possible, and implement investor protection measures.

　　"Under the background of the reform of the comprehensive registration system, the Shanghai Stock Exchange will continue to adhere to the main business of supervision and smooth the delisting of enterprises ‘ Exit ’ , and constantly improve the delisting risk identification, delisting risk warning, delisting disposal cooperation, delisting decision implementation, delisting business safety operation, delisting supervision and honest supervision and other major delisting mechanisms, and give full play to the joint efforts of supervision to ensure ‘ Retreat, retreat steadily ’ . At the same time, establish a sound evaluation mechanism for delisting system, regularly summarize and evaluate the implementation of delisting indicators, continuously improve the pertinence and effectiveness of delisting indicators, and promote the deepening of delisting system reform. " The person in charge said.

　　The relevant person in charge of the Shenzhen Stock Exchange said that in order to deal with the delisting risk steadily, the Shenzhen Stock Exchange found out the delisting risk base in advance, strengthened the delisting risk monitoring, kept a close eye on the key issues of key companies, and adopted various measures such as interviews and inquiries according to regulations, clarified the regulatory attitude, conveyed the regulatory guidance, and urged the "key minority" of the company and accountants to perform their duties diligently, return to their posts and fulfill their duties, and solidly promoted the delisting supervision work.

　　"At the beginning of January this year, Shenzhen Stock Exchange issued the Notice on Strengthening the Information Disclosure of the 2022 Annual Report of Delisting Risk Companies on the basis of summarizing the previous supervision experience of delisting and fully evaluating the implementation effect of the new delisting regulations. Focusing on the key issues such as operating income deduction, non-recurring gains and losses identification, audit opinion types and abnormal financial treatment, information disclosure is the starting point to urge companies with delisting risks to continue to make risk warnings, strengthen the disclosure of annual reports and audit progress, and guide the market to form reasonable expectations. At the same time, delisting decisions are made in strict accordance with delisting standards and procedures, and relief procedures such as hearing and review are provided. " The person in charge said that next, the Shenzhen Stock Exchange will continue to pay close attention to front-line supervision, maintain the normal order of the market, protect the legitimate rights and interests of investors, and promote the long-term healthy and stable development of the capital market.

　　Zhu Haibin, general manager of the research center of open source securities North Exchange, said that under the comprehensive registration system, listed companies need to continuously strengthen corporate governance, and companies to be listed should improve the quality of information disclosure. Enterprises that have been delisted should also reflect on it in time, do a good job in information disclosure in the delisting sector and seek positive changes in their main business. At the same time, securities companies, accounting firms, law firms and other intermediaries should also perform their respective duties, give full play to their respective professional advantages, and undertake the responsibility of checking and supervising the relevant listed entities, so that the capital market can truly form a virtuous circle of survival of the fittest. (Wang Junling)