The Last Drop Of Blood In China'S Stock Market Is The Desperate Tears Of Investors.

The delisting system of listed companies is the most failed system in China's capital market.

As early as 1994, China's first "company law" stipulates the delisting system, which should be terminated when a listed company has fraudulent practices such as financial fraud or its losses for three consecutive years.

However, a major national condition of China's capital market is that listing is equal to money, which leads to a shortage of indicators. Some listed companies are losing money, and even if the company has not run into a "zombie" state, the company's "shell resources" are in excellent demand.

In the case of people playing the game of "shell", the so-called "delisting system" is nothing but a "Scarecrow" for a long time, and even a weak threat effect does not exist.

Since the founding of China's capital market, fraudulent, illegal and continuous losses have been continuous. Until 2001, when China's capital market was 10th anniversary, only the first listed PT Narcissus was actually listed.

During the period, every chairman of the SFC took office to reform the delisting system of listed companies. Almost all of them will introduce a new delisting system. However, the delisting system has been "delisted" for several editions, and the chairman of the SFC has changed several times, and there are few listed companies in the market.

According to the media statistics, before the implementation of the new delisting system, more than 3000 listed companies totally only delisted 78, and the ratio of delisting was less than 3%. Compared with the 10% year's withdrawal ratio in the US stock market, it basically belongs to the same name.

The delisting mechanism of listed companies is an important part of the mechanism design of the securities market. By eliminating the inferior companies and exerting external pressure, the listed companies have a very significant incentive and constraint effect on improving performance and improving corporate governance.

The failure of the delisting system in China's capital market means that the most important martial arts have been abolished on the external governance mechanism of listed companies. There is no restriction on delisting. The listed companies can be arbitrarily punished for fraud and fraud, because in any case, they will not be sentenced to death. This is undoubtedly an encouragement to those listed companies that are illegal.

In addition, a single shareholding structure determines that there is no competition for control power that causes pressure on the management of the company. This is the important institutional root that leads to the failure of Chinese corporate governance, and also the root of investors' loss of confidence in China's capital market.

Based on this, the reform of the delisting system is no exaggeration to say that it is the last redemption opportunity in China's capital market. The SFC has also expressed its determination to kill a blood route for the reform of the delisting system.

I agree with the outside world that this delisting system is "most strict in history" because the system itself is already very strict.

It is not only clear that there are two types of illegal activities such as fraudulent issuance and illegal disclosure of major information by listed companies, which are decided by the SFC according to law, or pferred to the public security organs by the SFC according to law on suspicion of crimes.

It should be suspended.

In the case of a listed company, in order to suspend the listing of such a major violation of the law, the stock exchange shall make a decision to terminate the listing within a year, and stipulates that the three consecutive years of loss will directly be forced to withdraw from the market.

These pertinence is undoubtedly very strong, and it is also a hard nut to crack for many years.

For a long time, the delisting system has caused many shareholders to "die" because many major illegal companies have to withdraw from the market, and they can always escape the gates of hell through many ways.

There is no shortage of such miracles and cases in China's capital market.

The Wanfu branch, known as "the first case of gem fraud", is a disgrace to China's capital market. It is a disgrace to China's capital market and a disgrace to China's delisting system.

A system, no matter how gorgeous the words are, how delicate the system is and how strict the punishment measures are, but how to not implement it at all is a joke.

So what investors expect is not

How strict it is, but whether the system itself can be truly implemented.

According to the author's knowledge, before the implementation of the new delisting system, those listed companies that are likely to be delisted are already moving various ways to compete with the new delisting system. In the past, some of the concept of speculation shell companies are again eager to prepare for the new shame of the new delisting system.

All of these are undoubtedly worrying about the prospect of the new delisting system.

China's capital market for more than 20 years is not without a system, but a lack of respect for the system at least.

If a system is not carried out, it will ultimately damage the belief in the system, which will eventually make the system nominal and combat investor confidence.

A market that does not abide by the rules of the game is doomed to fail in a market that lacks rules, beliefs and awe.

Of course, for a nation which has long been unaccustomed to observing the system, it takes a long process to cultivate awe of the system. But if it does not start, it will never cultivate religious devotion to the system.

The dignity of the capital market system requires sacrificial goods and victims.

I hope that after the implementation of the new delisting system, there will soon be a qualified delisting enterprise to be "cut off".

Only if the execution of such a death penalty is implemented, will the real deterrent force be created for the counterfeiting enterprises.

The Chinese stock market is never short of money, and the key to the investor's despair over China's capital market is that the system is humiliated, making the stock market a place without any rule.

Only by setting up the wall of interest protection system in China's capital market can we really change the nature of the money market and restore investor trust and confidence.

The author also hopes that the SFC will make a firm statement that it is true that there is a "one market and one delisting".

If another wolf story is introduced, if the delisting system is again delisted, instead of the farce of the listed company's delisting, it means that the time for Chinese investors to "completely withdraw" confidence in the capital market is coming.

I don't think anyone hopes that the last drop of blood in China's stock market is the tears of the Chinese stock market desperate to bid farewell to the market.