Editor's note: Recently, more investors have consulted about the risk warning board through the Shenzhen Stock Exchange Investor Service Hotline (400-808-9999). In order to help investors further understand the relevant regulations, we have sorted out the more concentrated issues of investor consultation for investors' reference.
1. The new delisting rules set up a risk warning board, which stocks are traded on the risk warning board?
A: According to the relevant provisions of the Shenzhen Stock Exchange Trading Rules (Revised in March 2021), there are two types of stocks traded on the risk warning board:
(1) Stocks that have been subject to risk warnings in accordance with the listing rules of the Shenzhen Stock Exchange, i.e. stocks with risk warnings;
(2) Stocks that have been decided to terminate their listing in accordance with the Listing Rules of the Shenzhen Stock Exchange but have not yet been delisted during the delisting consolidation period, i.e. delisted stocks.
2. Under what circumstances will the Company's stock be subject to a risk warning?
A: According to the relevant provisions of the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange (revised in 2022) and the Rules Governing the Listing of Stocks on the Growth Enterprise Market of the Shenzhen Stock Exchange (revised in December 2020), if a listed company has an abnormal financial situation or other situation, resulting in the risk of termination of the listing of its stock, or it is difficult for investors to judge the company's prospects, its investment rights and interests may be damaged, and there are other major risks, the Shenzhen Stock Exchange will implement a risk warning for the company's stock trading.
Risk warnings include delisting risk warnings and other risk warnings.
3. Are there any special logos for risk warning board stocks?
A: According to the relevant provisions of the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange (revised in 2022) and the Rules Governing the Listing of Stocks on the Growth Enterprise Market of the Shenzhen Stock Exchange (revised in December 2020), if the company's stock trading is subject to a delisting risk warning, it is preceded by the word "*ST"; where other risk warnings are implemented, the word "ST" is preceded by the stock abbreviation to distinguish it from other stocks. If the company has both delisting risk warnings and other risk warnings, it shall be preceded by the words "*ST" in front of the stock abbreviation.
If the company's stock enters the delisting consolidation period, it shall be marked as "withdrawing" after the stock abbreviation.
4. What are the conditions for investors to trade risk warning board stocks?
A: According to the relevant provisions of the Shenzhen Stock Exchange Trading Rules (revised in March 2021), ordinary investors who buy risk warning stocks or delisted stocks for the first time should sign the Risk Warning Stock Risk Disclosure Form or the Delisted Stock Risk Disclosure Letter (hereinafter collectively referred to as the "Risk Disclosure Letter") on paper or electronically. If an ordinary investor has not signed the "Risk Disclosure Letter", the member shall not accept his purchase order.
Individual investors participating in delisted stock buying transactions must have more than two years of stock trading experience, and the assets in the securities account and capital account in the securities account and the capital account in the first 20 trading days before the application permission are not less than RMB 500,000 per day, excluding the securities and funds that the investor has integrated through margin financing.
5. What is the percentage of stocks on the risk warning board?
A: According to the relevant provisions of the Shenzhen Stock Exchange Trading Rules (Revised in March 2021), the Shenzhen Stock Exchange imposes price increase and decrease restrictions on risk warning stocks and delisted stocks. The limit on the price increase or decrease of the main board risk warning stock is 5%, and the limit on the price increase or decrease of the delisted stock is 10%. The limit on the price increase or decrease of GEM risk warning stocks and delisted stocks is 20%.
6. Is there a one-day cap on investors buying risk warning board stocks?
A: According to the relevant provisions of the Shenzhen Stock Exchange Trading Rules (Revised in March 2021), the number of individual risk warning stocks accumulated by investors through auction trading, block trading and after-hours pricing transactions on the same day shall not exceed 500,000 shares.
There is no limit on the number of delisted stocks that investors can buy in a single day.
7. How to calculate the number of individual risk warning stocks that investors buy in a single day?
A: According to the provisions of the Shenzhen Stock Exchange Securities Trading Business Guide No. 2 - Risk Warning Board Trading Matters, the sum of the number of entrusted purchases of a single risk warning stock purchased by investors through auction trading, block trading and after-hours pricing transactions on the same day and the number of purchased quantities declared to be bought on the same day and the number that has not yet been completed or revoked shall not exceed 500,000 shares, except for the repurchase of listed companies and the increase of shares by more than 5% of shareholders in accordance with the disclosed increase plan.
The cumulative number of risk warning stocks purchased by an investor on the same day is calculated according to the number of purchases of a single or multiple ordinary securities accounts opened by the investor in his or her own name and the number of purchases in credit securities accounts.
8. The new delisting rules reduce the delisting consolidation period from 30 trading days to 15 trading days, if the company's stock is suspended during the delisting consolidation period, is the suspension period counted as the delisting consolidation period?
A: Not counted. According to the relevant provisions of the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange (revised in 2022) and the Rules Governing the Listing of Stocks on the Growth Enterprise Market of the Shenzhen Stock Exchange (revised in December 2020), the trading period during the delisting period is 15 trading days. During the delisting period, the shares of listed companies are not suspended in principle. If a company applies to the Shenzhen Stock Exchange for the suspension of trading of its shares throughout the day due to special reasons, the suspension period is not counted in the delisting consolidation period, and the cumulative number of trading suspension days shall not exceed 5 trading days.
9. What are the provisions for the temporary intraday suspension of trading on the first day of delisting?
A: According to the relevant provisions of the Shenzhen Stock Exchange Trading Rules (revised in March 2021), the price increase or decrease limit is not implemented on the first trading day of the stock delisting period, and if the following circumstances occur in the stock auction trading on that day, the Shenzhen Stock Exchange may implement intraday temporary trading suspension measures:
(1) The intraday transaction price rises or falls by 30% or more than the opening price of the day for the first time;
(2) The intraday transaction price rises or falls by 60% or more than the opening price of the day for the first time.
The duration of a single intraday temporary suspension is 10 minutes, and the specific time is subject to the announcement of the Shenzhen Stock Exchange. If the temporary suspension time spans 14:57, trading resumes at 14:57 and the accepted declarations are resumed for trading collection auction, and then the closing collection auction is conducted.
The Shenzhen Stock Exchange may adjust the relevant indicator thresholds according to the intraday trading of delisted stocks, or take further intraday risk control measures.
10. Are trades during the delisting consolidation period included in the calculation of the index?
A: According to the relevant provisions of the Shenzhen Stock Exchange Trading Rules (Revised in March 2021), transactions during the stock delisting period are not included in the calculation of the Shenzhen Stock Exchange index, and the trading volume is included in the total market turnover on the day.
(Disclaimer: This section of Q&A is only published for investor education purposes and does not constitute investment advice.) Investors operate accordingly at their own risk. The Shenzhen Stock Exchange strives to make the information involved in this column Q&A accurate and reliable, but does not make any guarantee for its accuracy, completeness and timeliness, and is not responsible for losses caused by the use of this column Q&A. ）