Shanghai Stock Exchange Will Start Mandatory Delisting Mechanism

According to the regulatory authorities, in order to "help" controlling shareholder Huaxintai "fulfill" the performance commitment of the share reform, Bo Yuan invested many times during 2011 to 2014, forged the bank acceptance bill, and made a fictitious use of the performance commitment fund to purchase major pactions such as bank acceptance bills, bills replacement, discount and prepayment, and disclosed the serious false reports of financial information.

Among them, the annual report in 2011 increased by 347 million 50 thousand yuan in assets, accounting for 69% of the total assets. In 2012, the annual report increased by 364 million 558 thousand and 300 yuan, accounting for 62% of the total assets, and the profit increased by 18 million 932 thousand yuan, accounting for 90% of the total profits. 2013 annual report increased by 378 million yuan, accounting for 62% of total assets, with a gross profit of 23 million 645 thousand and 400 yuan, accounting for 258% of total profits.

Bo Yuan investment not only has a long span of major illegal time, but also involves a huge amount of money, which is also sufficient to verify the serious nature of its illegal circumstances and its abominable nature.

On the other hand, if it was not a case in point and was investigated by regulators in June last year, perhaps the 2014 annual report of Bo Yuan investment is also a false report.

After all, the story of its inflated assets has only been "compiled", and its annual and semi annual reports can convince investors.

The regulatory authorities make this arrangement in the system, which is conducive to safeguarding the interests of investors, but is not conducive to maintaining the seriousness and deterrence of the delisting system, and is not conducive to combating illegal and illegal activities.

For a major illegal company, its compensation for investors' losses is due, and it is absolutely impossible to leave any "tail" when it is forced to withdraw from the market.

Otherwise, it will condone those fraudulent practices.

The perpetrate the practices of new shares.

This is even more true.

Therefore, it is suggested that the regulatory authorities should revise the regulation.

In the light of

In accordance with the provisions of the Supreme People's Court on the fifth and sixth provisions of the Supreme People's Court on the trial of civil compensation cases caused by false statements in the securities market, the supervision department recommends civil compensation litigation for listed companies.

However, in the context of "frequent filing, difficult litigation, difficult court and difficult execution", rights protection is difficult to cause many investors to "take a long way" for litigation, which means that some interests are damaged and investors' legitimate rights and interests can not be guaranteed.

If a listed company can take the initiative in setting up an investor compensation fund, it may be much better.

On the other hand, although the regulatory authorities launched a mandatory delisting mechanism for Bo Yuan investment, whether it will really be "delisted" will obviously have to ask a big question mark from the capital market "farewell".

According to the new regulations issued last year, "some opinions on the reform and improvement and strict implementation of the delisting system of listed companies", as well as the relevant provisions of the stock listing rules of the Shanghai Stock Exchange, companies which have been suspended for major violations of the listed companies may apply to the Shanghai Stock exchange to return to the stock exchange if they are able to correct the illegal acts, change the responsible personnel and make proper arrangements for the liability for civil compensation during the period of the suspension of the listing.

If Bo Yuan investment does not want to be "delisted", it can greatly adjust its financial data, punish relevant responsible personnel, and take the initiative to undertake civil liability for compensation in accordance with the regulations of the system, so as to achieve the "qualification" that can be applied for restoring the listing.

Well, if other conditions are available, even if Bo Yuan investment has been delisted, there may be a possibility of re entering the capital market in the future.

That is to say, even if there are major violations, Bo Yuan investment may continue to be "active" in the market.