Is The Normalization Of Delisting In The True Sense Really Coming?

The so-called normalization of delisting, which depends solely on the subjective will of the regulator, is a loose rubber band, which is not necessarily reliable.

It is indispensable to normalize the delisting mechanism.

Only when the market delisting is built on this basis can it become the normalization of delisting in the true sense.

As the *ST long oil delisting in 2014, the delisting case has been reappearing for three years. It is hard to imagine if there is no regulatory authority to promote the normalization of the delisting mechanism.

However, perhaps it is precisely because of the excessive strength of regulatory intervention in the process of *ST's new metropolis delisting, it seems that people lack confidence in the normalization of the delisting mechanism.

Does every ST or *ST stock that faces a delisting should decide whether it should retire or not? It should not be a rule but a man-made regulatory will.

Due to the provision of guarantees for related parties by irregularities, *ST Xindu's financial and accounting reports for two consecutive fiscal years in 2013 and 2014 were issued an audit report that could not be expressed. The company's shares were suspended from May 21, 2015.

According to the 2015 annual report, the newly completed *ST Xindu achieved 117 million yuan in revenue, 69 million 710 thousand yuan in net profit and 9 million 615 thousand and 900 yuan in net assets.

In May 3, 2016, *ST Xindu applied to Shenzhen Stock Exchange to resume listing of company stock.

The Shenzhen Stock Exchange formally sent the letter the next day, asking the company to supplement the relevant materials for the resumption of listing.

Since then, the Shenzhen Stock Exchange has decided to include the rental income of golf assets in the 2014 lease period for *ST Xindu to investigate and verify the key issues such as the accounting treatment compliance, the adequacy of estimated liabilities and the authenticity of subsidiaries' performance in 2015.

In April 25, 2017, the Hunan branch of Tianjian certified public accountants sent a letter to a listed company that it should conduct a careful verification of the matter at the request of the relevant regulatory authorities, adjusted the previous judgment and thought that although the income was related to the normal business operation, it should be regarded as a non recurring profit or loss in view of the background and special reasons of the income recognition.

According to the relevant instructions issued at the same time to the Shenzhen Stock Exchange, the company adjusted its non recurring gains and losses in 2015.

It is negative.

It is said that when *ST and Xin Du, who are shocked and angry, want to complain about betraying their own health, it is too late.

The speed of the move of the delisting mechanism exceeded that of any other time in the past.

It is worth noting that what is known as "the background and special reasons for income recognition" is not the other thing. It is *ST's new metropolis struggling for two years in the market.

Shell regrouping has been popular in China's capital market for a long time, so that many shell companies that are on the verge of delisting can be retreated. It is only the current delisting rules that have been losing for three consecutive years to give the shell a chance to take advantage of it.

Data show that as of now, there are 106 stocks that have been delisted in history. Of them, the number of companies that have been delisted for three consecutive years is the largest, reaching 47.

Most of these delisting cases occur in the early stages of the delisting system.

With the introduction of the ST system plus the star system, the shell reorganization is emerging one after another, and the upgrading of accounting methods is even more innovative.

As one of the old rivers and lakes, *ST Xindu chose the Tianjian accounting firm, a former criminal record, as its auditing body, and naturally has its own interests.

It's just that intelligence is not smart enough to be wrongly counted. It is not counted that the regulation that has always been blind to the eye is not bought. It is sold at the critical moment by partners who thought they should have a tacit understanding with them.

This fight is not a bad thing.

Although since 2014

After repeated revisions by the regulatory authorities, the standards for delisting in China's relevant laws are vague, and the operability is not strong enough to change fundamentally.

In particular, the delisting standards of listed companies are relatively single, and too much attention has been paid to losses for three consecutive years, which will inevitably provide certain operational space for poor companies to avoid delisting.

Some of the underperforming companies adopt different ways of disposing of illiquid assets, reversing the assets impairment provision or projected liabilities mentioned in the previous year, carrying out debt restructuring proceeds and obtaining government subsidies. Although they have not fundamentally improved the company's operational capability, it is not difficult to achieve "retreat or retreat" or "retreat".

Market restructuring of shell resources

This is the trend of behavior.

*ST new capital resumed trading last April 2015 or even pulled up 15 trading restrictions. Many people could not afford to sell it. Then they stopped trading until now.

After entering the delisting period, it is not impossible to eat 15 or even more.

Only in this way, do we not know how many investors who are trapped, including institutions, will be unable to touch their own homes? The delisting standards of foreign mature market listed companies, in addition to poor performance and continuous losses, include capital reduction, low liquidity, insufficient shareholding ratio, assets and liabilities, false statements, mergers and acquisitions, bankruptcy dissolution, active application for delisting, and violation of continuous listing standards.

To adapt to the requirements of capital market marketization, legalization and internationalization, it is an important issue to restructure and perfect the legal system of delisting of listed companies.

According to the balance of market access and exit mechanism to achieve the mutual promotion of the market, it is necessary to further improve the conditions of the delisting, not only to enforce the forced delisting of the counterfeiters, but also from the practical point of view, from the bias to the profit and loss indicators and to the financial indicators, as in foreign countries, including the price, market value and equity structure of the market, and to establish a multi-level exit mechanism for the multi-level market system.

This is not enough to solve the problem of "delisting" caused by the profit manipulation of single profit and loss index. It is more difficult to curb the unhealthy trend of investors' speculation and reorganization.

The so-called normalization of delisting, which depends solely on the subjective will of the regulator, is a loose rubber band, which is not necessarily reliable.

It is indispensable to normalize the delisting mechanism.

Only market based delisting on this basis can become a truly de operational normalization which is both operational and trustworthy.

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