A new round of delisting reform has been launched, and the strictest new regulations are coming

Today's attention //

1. National Standing Meeting: Study and improve measures to solve the long-term mechanism of enterprise account arrears

2. China's capital market ushered in the third "National Nine Articles"

3. The China Securities Regulatory Commission issued the "Opinions on the Strict Implementation of the Delisting System", adding a situation of serious fraud for one year and continuous fraud and delisting for many years

4. The IPO market ushered in major rule adjustments, and the Shanghai and Shenzhen stock exchanges significantly increased the financial indicators of listing on the main board and GEM

5. The National Association of Institutional Investors initiated a self-discipline investigation into 6 small and medium-sized financial institutions suspected of violating regulations such as agency holding

Macro Policy //

1. National Standing Meeting: Study and improve measures to solve the long-term mechanism of enterprise account arrears

Premier Li Qiang presided over an executive meeting of the State Council to study and improve measures to solve the problem of enterprise account arrears. The meeting pointed out that solving the problem of arrears of enterprise accounts is related to the improvement of the business environment, the overall situation of economic recovery, and the image and credibility of the government. It is necessary not only to promote the special action of debt settlement with high quality and solve the current stock of debt settlement, but also to make efforts to improve the long-term mechanism and resolutely curb the "debt while clearing" and "debt after settlement". It is necessary to focus on the problem of government arrears of accounts owed to enterprises and the problem of large enterprises owing to small and medium-sized enterprises, further increase the cost of non-compliance of arrears entities, reduce the cost of rights protection of arrears enterprises, and pay close attention to improving relevant laws and regulations and systems and regulations such as project price settlement and commercial draft management, so that the long-term mechanism can operate smoothly as soon as possible.

2. China's capital market ushered in the third "National Nine Articles"

China's capital market ushered in the third "National Nine Articles". The State Council issued the "Several Opinions on Strengthening Supervision and Preventing Risks and Promoting the High-quality Development of the Capital Market", which consists of nine parts. This is the first time in 10 years that the State Council has issued a guiding document on the capital market after the two "National Nine Articles" in 2004 and 2014.

The "Opinions" put forward to promote the smooth operation of the market. Strengthen the comprehensive research and judgment of stock market risks. Strengthen the strategic force reserve and the building of stability mechanisms. Concentrate on rectifying outstanding risks and hidden dangers in the field of private equity funds. Improve the market-oriented, law-based, and diversified bond default risk handling mechanism, and resolutely crack down on debt evasion. Explore futures regulatory regimes and business models that adapt to China's development stage. Do a good job in cross-market, cross-industry and cross-border risk monitoring and response. Strengthen the supervision of transactions. Improve regulatory standards for abnormal transactions and market manipulation. Introduce regulations on programmatic trading supervision and strengthen the supervision of high-frequency quantitative trading. Formulate rules for the operation of private securities funds. Strengthen bottom-line thinking and improve response to extreme situations. Strictly investigate and deal with illegal acts such as manipulating the market and malicious short-selling, and strengthen deterrence warnings. Improve the expectation management mechanism. Incorporate the assessment of the impact of major economic or non-economic policies on the capital market into the framework for assessing the consistency of macroeconomic policy orientations, and establish a coordination mechanism for the release of major policy information.

3. The State Council: Intensify the joint crackdown on securities and futures crimes

The new "Nine Articles" propose to intensify the joint crackdown on securities and futures crimes. Complete mechanisms such as for the discovery of clues and rewards for reporting. Improve the judicial system and mechanism for securities law enforcement, and improve the efficiency of the connection between administrative and criminal cases. Strengthen efficient coordination between administrative supervision, administrative adjudication, and administrative procuratorates. Increase the force of three-dimensional accountability in administrative, civil, and criminal cases, and strictly investigate and deal with all kinds of violations of laws and regulations in accordance with the law. Intensify the application of the litigation system of special representatives for securities disputes, and improve the system of commitment of parties to administrative law enforcement. Explore and carry out pilot projects for procuratorial organs to initiate securities civil public interest litigation. Further strengthen the establishment of a credit system in the capital market.

4. The State Council: For companies that have not paid dividends for many years or have a low dividend ratio, restrict major shareholders from reducing their holdings and implement risk warnings

The new "National Nine Articles" require that the supervision of cash dividends of listed companies be strengthened. For companies that have not paid dividends for many years or have a low proportion of dividends, major shareholders are restricted from reducing their holdings and risk warnings are implemented. Increase incentives for high-quality companies that pay dividends, and take multiple measures to promote the increase in dividend yields. Enhance the stability, sustainability and predictability of dividends, and promote multiple dividends a year, pre-dividends, and dividends before the Spring Festival.

5. The State Council: further tighten the mandatory delisting standards and further reduce the value of "shell" resources

The new "National Nine Articles" require deepening the reform of the delisting system and accelerating the formation of a normalized delisting pattern that should be withdrawn and cleared in a timely manner. Further tighten the criteria for mandatory delisting. Establish and improve the differentiated delisting standard system for different sectors. Scientifically set up the scope of application for major illegal delisting. Tighten financial delisting indicators. Improve market capitalization standards and other trading delisting indicators. Intensify the implementation of standardized delisting. Further unblock diversified delisting channels. Improve policies and regulations such as absorption and merger, and encourage and guide leading companies to increase the integration of listed companies in the industrial chain based on their main business. Further reduction in the value of "shell" resources. Strengthen the supervision of mergers and acquisitions, strengthen the relevance of the main business, strictly control the quality of injected assets, increase the supervision of "backdoor listing", and accurately crack down on all kinds of illegal "shell" behaviors. Further strengthen the supervision of delisting. Strictly enforce delisting, and severely crack down on financial fraud, market manipulation and other illegal acts that maliciously circumvent delisting. Improve the investor compensation and relief mechanism in the process of delisting, and the controlling shareholders, actual controllers, directors and senior executives who are responsible for major illegal delisting shall compensate investors for losses in accordance with the law.

6. The State Council: Strengthen the supervision of all aspects of new stock issuance, inquiry, pricing and placement, and rectify market chaos such as high-priced over-offering and group price reduction

The new "National Nine Articles" are clear, and the entry of issuance and listing is strictly controlled. Strengthen the responsibility of the whole chain of issuance and listing. Further consolidate the main responsibility of the exchange for review, improve the establishment and operation mechanism of the stock listing committee, and strengthen the supervision of the whole process of committee members' performance of duties. Establish a mechanism for retrospective accountability and accountability for audits. Further consolidate the primary responsibility of issuers and the "gatekeeper" responsibilities of intermediaries, and establish a "blacklist" system for intermediaries. Adhere to the principle of "declaration is responsibility", and strictly investigate illegal issues such as fraudulent issuance. Intensify the supervision of issuance and underwriting. Strengthen the supervision of all aspects of new share issuance, inquiry, pricing, and placement, and rectify market chaos such as over-offering at high prices and price reduction. Strictly strengthen the supervision of information disclosure of fundraising and investment projects. Regulate and guide the healthy development of capital in accordance with the law, strengthen penetrating supervision and regulatory coordination, and severely crack down on illegal holdings, surprise shareholding at abnormal prices, and benefit transfer.

7. The State Council: Improve the listing standards of the main board and the growth enterprise board, and improve the evaluation standards for the scientific and technological innovation attributes of the science and technology innovation board

The new "National Nine Articles" put forward strict control of the entry of issuance and listing. Further improve the issuance and listing system. Raise the listing standards of the main board and the Growth Enterprise Market, and improve the evaluation standards for the scientific and technological innovation attributes of the Science and Technology Innovation Board. Improve the quality and efficiency of issuance and listing counseling, and expand the coverage of on-site inspections of enterprises under review and related intermediaries. It is clear that the dividend policy should be disclosed when listing. Situations such as pre-listing surprise "clearance" dividends will be included in the negative list for issuance and listing. Strictly supervise spin-offs and listings. Strict refinancing review and control.

8. The State Council: Issued administrative measures for the reduction of shareholdings of listed companies, and implemented policies for different types of shareholders

The new "National Nine Articles" require that the system of rules for reducing holdings be comprehensively improved. Issued measures for the management of shareholding reduction of listed companies, and implemented policies for different types of shareholders. Strictly regulate the reduction of shareholdings by major shareholders, especially controlling shareholders and actual controllers, and resolutely prevent all kinds of detours from reducing shareholdings in accordance with the principle of substance over form. Order the violating entity to repurchase the shares that have been reduced in violation of the regulations and pay the price difference. Crack down on all kinds of illegal reductions.

9. Wu Qing, Chairman of the China Securities Regulatory Commission: Continue to make efforts in three aspects: strict control of listing, strict and continuous supervision, and increased supervision of delisting

Wu Qing, chairman of the China Securities Regulatory Commission, said that the supervision of listed companies should highlight the whole chain of supervision and enhance the investment value of listed companies, and continue to make efforts in three aspects: strict listing control, strict and continuous supervision, and increased delisting supervision. Institutional supervision should promote the return to the origin, become better and stronger, further consolidate the responsibility of "gatekeepers", guide institutions in various industries such as securities and futures funds to correct their business philosophy, and improve their compliance level, professional service capabilities and core competitiveness. Actively cultivate rational investment, value investment, long-term investment philosophy and healthy investment culture. Transaction supervision should promote fairness and efficiency, standardize the trading behavior of all types of entities and funds, severely crack down on violations of laws and regulations that disrupt the market, and maintain an open, fair, and just order.

10. The China Securities Regulatory Commission issued the "Opinions on the Strict Implementation of the Delisting System"

The China Securities Regulatory Commission (CSRC) issued the "Opinions on the Strict Implementation of the Delisting System" to further deepen the reform of the delisting system and achieve an orderly and timely settlement pattern. The main contents include: First, strict mandatory delisting standards. The first is to strictly enforce the scope of application of major illegal delisting, lower the threshold for triggering major illegal delisting due to financial fraud within two years, and add new circumstances of serious fraud for one year and continuous fraud for many years. The second is to include the long-term non-resolution of capital occupation resulting in the "hollowing out" of assets, the non-standard opinions of continuous internal control for many years, and the disorderly struggle for control that leads to the inability of investors to obtain effective information of listed companies into the normative delisting situation, so as to strengthen the strong constraints on standardized operation. The third is to increase the operating income delisting index of loss-making companies and increase the delisting of companies with poor performance. Fourth, improve the market value standard and other trading delisting indicators. Second, we will further unblock diversified delisting channels. Improve policies and regulations such as absorption and merger, and encourage and guide leading companies to increase the integration of the industrial chain based on their main business. Third, reduce the value of "shell" resources. Strengthen the supervision of mergers and acquisitions, strengthen the relevance of the main business, and strengthen the supervision of "backdoor listing". Strengthen the supervision of acquisitions, consolidate the responsibilities of intermediaries, and standardize control transactions. Strictly crack down on violations of laws and regulations behind "shell frying". Resolutely liquidate listed companies that do not have reorganization value. Fourth, strengthen the supervision of delisting. Strictly implement the delisting system, and severely crack down on financial fraud, insider trading, market manipulation and other violations of laws and regulations. Severely punish the "key minority" such as controlling shareholders, actual controllers, directors, and senior executives who lead to major illegal delisting. Promote and improve the three-dimensional accountability system for administrative, criminal and civil compensation. Fifth, we will implement compensation relief for delisted investors. Comprehensive use of representative litigation, advance compensation, professional mediation and other tools to protect the legitimate rights and interests of investors.

11. The China Securities Regulatory Commission issued the 2024 legislative work plan

The China Securities Regulatory Commission (CSRC) issued the 2024 legislative work plan. A total of 14 regulatory projects are included in the 2024 legislative work plan of the China Securities Regulatory Commission, including 9 "key projects to be introduced within the year" and 5 projects "need to be studied and introduced at the right time", and the focus of the legislation is to strengthen the supervision of key areas of the capital market, maintain the stable and healthy development of the market, and effectively protect the legitimate rights and interests of small and medium-sized investors. In 2024, the China Securities Regulatory Commission will also cooperate with the relevant departments of the State Council in formulating and revising the Regulations on the Supervision and Administration of Listed Companies, the Regulations on the Supervision and Administration of Securities Companies, the Regulations on the Administration of Real Estate Investment Trusts and other administrative regulations, organize and carry out the evaluation of the implementation of the Securities Investment Fund Law, and promote the revision and improvement of the Securities Investment Fund Law, and cooperate with the relevant judicial authorities in the formulation and revision of relevant judicial interpretations in the field of securities and futures.

China Bond Alert //

1. The State Council: Resolutely crack down on debt evasion and accelerate the formulation of regulations on the management of corporate bonds

The new "Nine Articles" put forward the improvement of a market-oriented, law-based, and diversified bond default risk handling mechanism, resolutely cracking down on debt evasion, speeding up the formulation of regulations on the management of corporate bonds, and consolidating the responsibilities of local governments in improving the quality of listed companies and resolving and disposing of bond defaults and risks of private equity institutions.

2. Beijing Vanke has adjusted, and the company responded that it conforms to changes in the market environment of the industry

According to the China Securities Journal, in response to the market news that Beijing Vanke has adjusted its organizational structure, Vanke Beijing said that in order to adapt to the changes in the industry market environment and match the needs of business development, it will further restructure and allocate the city companies in the region. After the adjustment, it will help to promote the integration of resources and the flexible allocation of talents between cities, concentrate the advantages of management resources, and improve efficiency.

3. Moody's: downgraded the family rating of Hilong Holdings to "Caa2", with a "negative" outlook

Moody's has downgraded Hilong Holdings' corporate family rating to "Caa2" from "Caa1" and maintains a negative outlook. Chenyi Lu, vice president and senior credit officer at Moody's Ratings, said the rating downgrade and negative outlook reflect the deteriorating liquidity and increased refinancing risk of Hilong Holdings. The company was unable to announce its 2023 financial results by the end of March 2024, and the subsequent suspension of trading in the shares would further limit its ability to obtain financing.

4. Zhenro Real Estate: It is expected that it will not be able to pay the principal and interest of the notes due on April 15

Zhenro Real Estate announced on the Hong Kong Stock Exchange that the outstanding principal amount of the January 2020 notes was US$290 million. In view of the Group's tight liquidity and financial pressure, the Company does not expect to be able to pay its outstanding principal and accrued interest on the January 2020 Notes when they mature on 15 April 2024. The Company and its advisers will continue to strive to reach a feasible solution for the overall restructuring of the Company's offshore debt to ensure the Group's sustainable operation for the benefit of all stakeholders.

5. Fujian State-owned Assets Company: "24 Fujian State-owned Assets MTN002" was cancelled

Fujian State-owned Assets Management Co., Ltd. issued an announcement saying that in view of the recent market fluctuations, it was decided to cancel the issuance of "24 Fujian State-owned Assets MTN002", and the follow-up issuance plan will be announced separately.

6. C&D Co., Ltd.: Cancel the issuance of "24 C&D MTN001"

C&D Co., Ltd. announced that due to the recent volatility of the medium-term note market, in order to reasonably reduce the issuance interest rate and control the company's financing costs, it was decided to cancel the issuance of "24 C&D MTN001", and the specific issuance time will be determined separately.

7. Oceanwide Holdings: The subsidiary was included in the list of dishonest judgment defaulters

Oceanwide Holdings Co., Ltd. announced that its subsidiary was included in the list of dishonest judgment defaulters. Wuhan Central Business District Co., Ltd., a holding subsidiary of the Company, reported that it had received the Enforcement Decision from the People's Court of Shangcheng District, Hangzhou, and that Wuhan Central Business District Co., Ltd. and Oceanwide Hotel Investment Management Co., Ltd. (an associate of the Company) had been included in the list of dishonest judgment defaulters by the court.

8. Agile Group and others were executed 880 million yuan

Recently, Agile Group, Nanjing Yahong Real Estate Development Co., Ltd., Hainan Yahe Tourism Development Co., Ltd., etc. added a new information on the person subject to enforcement, with an enforcement target of more than 880 million yuan, and the enforcement court is the Intermediate People's Court of Guangzhou City, Guangdong Province. Agile Group Holdings Limited was registered in the Cayman Islands in October 2005 and listed on the Hong Kong Stock Exchange in December 2005. Tianyan risk information shows that the company has 2 pieces of information on the person subject to execution, with a total amount of more than 910 million yuan.

9. The status of the 5 billion yuan ABS project of Huaneng Guicheng Trust Co., Ltd. was updated to "terminated"

According to the corporate bond project information platform of the Shanghai Stock Exchange, the project status of "Huatai Asset Management-Huaneng Trust Chengyue 12-20 Asset-backed Special Plan" was updated to "terminated". The variety of the project is ABS, with a proposed issuance amount of 5 billion yuan, and the issuer is Huaneng Guicheng Trust Co., Ltd.

10. The status of the 200 million yuan private placement project of Guangxi Fusui Tongzheng Investment and Financing Group Co., Ltd. was updated to "terminated"

According to the corporate bond project information platform of the Shanghai Stock Exchange, the status of the project "Guangxi Fusui Tongzheng Investment and Financing Group Co., Ltd. Non-public Issuance of Corporate Bonds to Professional Investors in 2023" has been updated to "terminated". The project is a private placement, with a proposed issuance amount of 200 million yuan, and the issuer is Guangxi Fusui Tongzheng Investment and Financing Group Co., Ltd.

China Stock Alert //

1. The China Securities Regulatory Commission (CSRC) solicited public opinions on the Administrative Measures for the Reduction of Shareholdings by Shareholders of Listed Companies (Draft for Comments).

The China Securities Regulatory Commission (CSRC) solicited public comments on the Administrative Measures for the Reduction of Shareholdings by Shareholders of Listed Companies (Consultation Paper). The Measures for Shareholding Reduction basically maintain the framework and main content of the Shareholding Reduction Provisions, mainly including the following aspects: increasing the pre-disclosure obligation before the major shareholder reduces its shareholding through block trading, requiring the persons acting in concert with the major shareholders and those acting in concert with a total shareholding of more than 5% to comply with the obligations of the major shareholders, clarifying that the controlling shareholders and actual controllers shall not reduce their holdings through centralized bidding or block transactions in the event of a broken issue or a net break, or if the dividends do not meet the standard; After the shareholding reduction by division or other means, the relevant parties continue to jointly comply with the shareholding reduction restrictions, clarify that the parties will continue to jointly comply with the shareholding reduction restrictions within 6 months after the termination of the concerted action relationship, and require the transferee to lock in the shareholding reduction for 6 months after the transfer by agreement, and the transferor who has lost its status as a major shareholder will continue to comply with the relevant restrictions within 6 months.

2. The China Securities Regulatory Commission (CSRC) solicited public opinions on the "Decision on Amending the Guidelines for the Evaluation of Scientific and Technological Innovation Attributes (Trial)".

The China Securities Regulatory Commission (CSRC) solicited public opinions on the "Decision on Amending the Guidelines for the Evaluation of Scientific and Technological Innovation Attributes (Trial)", adjusting the first paragraph of Article 1 of the "Guidelines" from "the cumulative amount of R&D investment in the last three years" from "cumulative more than 60 million yuan" to "cumulative more than 80 million yuan", the third item "the number of invention patents applied to the company's main business" was adjusted from "more than 5" to "more than 7", and the fourth item "the compound growth rate of operating income in the last three years" was adjusted from "reaching 20%" to "reaching 25%".

3. The China Securities Regulatory Commission (CSRC) solicited public opinions on the "Decision on Amending the List of Random Items for Random Inspection of the China Securities Regulatory Commission".

The China Securities Regulatory Commission (CSRC) solicited public opinions on the "Decision on Amending the List of Random Items to be Checked by the China Securities Regulatory Commission", and proposed to revise the "List") to revise the random inspection ratio of item 1 "inspection of initial enterprises" listed in the annex to the "List" from "the proportion of random lottery is 5%" to "the proportion of random lottery is 20%".

4. China Securities Regulatory Commission: It can carry out interview reminders or on-site inspections for institutions and individuals related to programmatic trading

The China Securities Regulatory Commission (CSRC) solicited public opinions on the Administrative Provisions on Programmatic Trading in the Securities Market (for Trial Implementation) (Consultation Draft), and stock exchanges, the Securities Association of China, and the Asset Management Association of China may, in accordance with the needs of self-discipline management, conduct interviews and reminders or on-site inspections of institutions and individuals related to programmatic trading. Where institutions and individuals related to programmatic trading violate the requirements of relevant provisions, the stock exchange, the Securities Association of China, and the Asset Management Association of China shall, in accordance with the regulations, take administrative measures such as verbal warnings, written warnings, corrections, and trading restrictions.

5. Shanghai Stock Exchange: It is planned to improve the listing conditions on the main board, and moderately increase the indicators such as net profit, net cash flow, operating income and market value

The Shanghai Stock Exchange intends to improve the listing conditions on the main board and moderately increase the indicators of net profit, net cash flow, operating income and market capitalization. (1) The cumulative net profit indicator for the last three years in the first set of listing standards was increased from 150 million yuan to 200 million yuan, the net profit indicator for the last year was increased from 60 million yuan to 100 million yuan, the cumulative net cash flow index from operating activities in the last three years was increased from 100 million yuan to 200 million yuan, and the cumulative operating income index in the last three years was increased from 1 billion yuan to 1.5 billion yuan. (2) The net cash flow from cumulative operating activities in the last three years in the second set of listing standards was increased from RMB150 million to RMB250 million. (3) The estimated market value indicator in the third set of listing standards will be increased from 8 billion yuan to 10 billion yuan, and the operating income indicator in the last one year will be increased from 800 million yuan to 1 billion yuan. At the same time, the "Rules for the Review of Stock Issuance and Listing" further clarifies the positioning of the main board, and puts forward detailed requirements for the industry status of issuers. The revised listing conditions on the Main Board are intended to come into effect from the date of promulgation of the new Listing Rules, and the new listing conditions shall apply to enterprises to be listed on the Main Board that have not yet passed the deliberation of the Listing Committee, and the listing conditions before the amendment shall apply to those that have passed the deliberation of the Listing Committee. For companies that have not passed the review of the Listing Committee and do not meet the new listing conditions, the SSE will guide them to re-apply for listing on other suitable boards.

6. Shenzhen Stock Exchange: It is proposed to revise the listing conditions of the main board to enhance the ability of stable returns

The Shenzhen Stock Exchange answered questions from reporters for public consultation on the revision of six business rules, including the "Rules for the Review of Stock Issuance and Listing". The newly revised Stock Listing Rules moderately increase the net profit, cash flow, Revenue and other indicators are mainly to increase the cumulative net profit index of the first set of listing standards from 150 million yuan to 200 million yuan in the last three years, the net profit index of the last year from 60 million yuan to 100 million yuan, the cumulative net cash flow index from operating activities in the last three years from 100 million yuan to 200 million yuan, and the cumulative operating income index of the last three years from 1 billion yuan to 1.5 billion yuan, and the cash flow index of the second set of listing standards from 150 million yuan to 250 million yuan, so as to further highlight the blue-chip positioning of the main board and enhance the ability of listed companies to return investors stably, and moderately increase the expected market value of the third set of listing standards on the main boardThe estimated market value of the third set of indicators will be increased from 8 billion yuan to 10 billion yuan, and the operating income in the last year will be increased from 800 million yuan to 1 billion yuan, so as to strengthen the representativeness of the industry and provide the market with more high-quality and diversified investment targets.

7. Shenzhen Stock Exchange: moderately increase the net profit indicators of the first set of listing standards on the GEM

8. Shanghai Stock Exchange: Companies that have not paid dividends for many years or have a low dividend ratio will be included in ST

The Shanghai Stock Exchange answered questions from reporters on seven business rules, including the Rules for the Review of Stock Issuance and Listing on the Shanghai Stock Exchange. Strong restraint measures will be taken for dividends that do not meet the standard. The focus is on including companies that have not paid dividends for many years or have a low dividend ratio in the "implementation of other risk warnings" (ST). In terms of the main board, ST will be implemented for companies that meet the basic conditions for dividends, the cumulative total cash dividends in the last three fiscal years are less than 30% of the average annual net profit, and the cumulative dividend amount is less than 50 million yuan. In terms of the Science and Technology Innovation Board, taking into account the characteristics of different sectors and the differences between companies, the absolute value of the dividend amount will be adjusted to 30 million. At the same time, companies on the STAR Market with cumulative R&D investment accounting for more than 15% of their cumulative operating income in the last three fiscal years or more than RMB 300 million in R&D investment in the last three fiscal years can be exempted from ST.

9. Shanghai Stock Exchange: Intensify efforts to clear serious fraud, and further lower the delisting standard of "fraud amount + fraud ratio".

The Shanghai Stock Exchange said that financial fraud is a vicious illegal act that touches the bottom line of the market, and the market has a high degree of attention, and the attitude is clear and the position is consistent. On the basis of retaining the original criteria for fraudulent issuance and evasion of financial delisting, this revision resolutely cracks down on malignant and long-term systemic financial fraud. First, crack down on continuous counterfeiting for many years, and if the counterfeiting continues for 3 years or more, as long as it is determined by administrative punishment, it will be resolutely cleared. Second, we will intensify the clearance of serious fraud, and further lower the delisting standard of "fraud amount + fraud ratio". For those who have committed fraud for one year, the amount of financial fraud in that year reaches more than 200 million yuan, and the proportion of fraud reaches more than 30%, it shall be delisted; if it has been fraudulent for two consecutive years, the total amount of fraud reaches more than 300 million yuan, and the proportion of fraud reaches more than 20%, it shall be delisted.

10. The Shanghai and Shenzhen Stock Exchanges have implemented the relevant requirements of the regulations on the management of programmatic trading, and continued to improve the regulatory arrangements for programmatic trading

The Shanghai and Shenzhen Stock Exchanges will pay close attention to the implementation of the regulatory requirements set forth in the Administrative Provisions, and formulate supporting self-regulatory rules as soon as possible to ensure that the measures of the Administrative Provisions are effective. Improve the monitoring and monitoring standards for abnormal transactions in programmatic transactions. To adapt to the characteristics of programmatic trading behavior, formulate more targeted monitoring indicators, and have carried out internal trial operation, and will further carry out compliance training in the future to clarify market expectations. Strengthen the management of high-frequency trading investors. Implement key supervision for investors in programmatic transactions whose number and frequency of declarations reach a certain standard, make differentiated arrangements for market usage fees, traffic fees and other related fees, and appropriately increase existing fee standards or increase other fees.

11. Beijing Stock Exchange: If the cumulative trading volume is less than 1 million shares for 120 consecutive trading days, it will be forcibly delisted

The Beijing Stock Exchange solicited public opinions on the revision of business rules such as public offering of shares and listing review rules. A new trading volume delisting indicator has been added, and the cumulative trading volume of less than 1 million shares for 120 consecutive trading days will be forcibly delisted. It is clarified that all financial indicators are cross-applied, that is, after the company is subject to the risk warning of compulsory delisting of financial indicators, if it touches any of the relevant financial indicators in the first fiscal year, it will be forced to delist. In order to clear out companies that have committed large-scale fraud and have been fraudulent for many years, it is newly stipulated that if the amount of the main financial indicators disclosed by the company in any one year is more than 200 million yuan and exceeds 30% of the amount of the corresponding account disclosed in that year, or the total amount of the main financial indicators falsely recorded in the main financial indicators reaches more than 300 million yuan and exceeds 20% of the total amount of the corresponding account disclosed in the two years, or the main financial indicators have false records for three consecutive years, it will be forcibly delisted.

12. The Shanghai and Shenzhen Stock Exchanges answered questions from reporters on the consideration of strengthening the supervision of dividends of IPO enterprises

The Shanghai and Shenzhen Stock Exchanges said that the "Opinions on Strictly Controlling the Access to Issuance and Listing and Improving the Quality of Listed Companies from the Source (Trial)" proposed that it is necessary to strictly investigate and prevent the sudden "clearance" dividends of enterprises to be listed. The preliminary consideration in terms of indicators is that if the cumulative dividend amount in the reporting period exceeds 80% of the net profit in the same period, or the cumulative dividend amount in the reporting period exceeds 50% of the net profit in the same period and the cumulative dividend amount exceeds 300 million yuan, and the total proportion of the replenishment and loan repayment in the raised funds is higher than 20%, it will not be allowed to be issued and listed. In the next step, the relevant rules will be revised and implemented.

13. Shanghai Stock Exchange: This week, we will focus on monitoring stocks with serious abnormal fluctuations such as delisting and finishing stocks, such as Botian and Laishen Tongling

This week, the Shanghai Stock Exchange adopted written warnings and other regulatory measures for 58 abnormal securities trading behaviors such as lifting and suppression, false declarations, etc., focusing on monitoring serious abnormal fluctuations such as delisting and sorting stocks, delisting Botian and Laishen Tongling, conducting special inspections on 23 major matters of listed companies, and reporting 1 case of suspected violations of laws and regulations to the China Securities Regulatory Commission.

14. Shenzhen Stock Exchange: This week, it will focus on monitoring abnormal securities such as "*ST Zuojiang".

This week, the Shenzhen Stock Exchange focused on monitoring the abnormal rise and fall of securities such as "*ST Zuojiang", and took written warning measures against a member and the relevant sponsor representative in response to the irregularities of the sponsor institution and the sponsor representative in the refinancing project.

15. China Nuclear Titanium Dioxide: The actual controller received the notice of filing a case from the Securities Regulatory Commission

China Nuclear Titanium Dioxide announced that on March 13, 2024, the China Securities Regulatory Commission decided to file a case against the actual controller on suspicion of violating the restrictive provisions of the transfer of China Nuclear Titanium Dioxide's non-public issuance of shares in 2023, illegal information disclosure and other violations of laws and regulations, in accordance with the Securities Law of the People's Republic of China, the Administrative Punishment Law of the People's Republic of China and other laws and regulations.

16. CITIC Securities: Received the notice of filing a case from the China Securities Regulatory Commission

CITIC Securities announced that the company and its wholly-owned subsidiary, CITIC Securities Capital, were suspected of violating laws and regulations in the process of transferring CNNC titanium dioxide's non-public issuance of shares in 2023 in violation of restrictive regulations, and received a notice from the China Securities Regulatory Commission.

17. Haitong Securities: Received a notice from the China Securities Regulatory Commission

Haitong Securities announced that the company received the "Notice of Case Filing" from the China Securities Regulatory Commission. Due to the company's suspected violations of laws and regulations in the process of transferring CNNC titanium dioxide's non-public issuance of shares in 2023 in violation of restrictive regulations, in accordance with the Securities Law of the People's Republic of China, the Administrative Punishment Law of the People's Republic of China and other laws and regulations, on March 13, the China Securities Regulatory Commission decided to file a case against the company.

18. *ST Changfang: Due to suspicion of violating laws and regulations, the CSRC decided to file a case against the company

*ST Changfang announced that the China Securities Regulatory Commission decided to file a case against the company due to suspected violations of information disclosure laws and regulations. Kang Mingsheng, a holding subsidiary of the company, was filed by the China Securities Regulatory Commission on suspicion of refusing and obstructing the securities regulatory authority and its staff from performing their duties and powers of supervision and inspection in accordance with the law, and there is no investigation result. At present, the company's production and operation activities are carried out normally, and the audit of the 2023 annual report is proceeding smoothly as planned.

19. ST Shimao: The company's shares may have the risk of termination of listing due to the stock price being lower than 1 yuan

ST Shimao announced that the closing price of the company's shares on April 12 was 0.99 yuan per share, lower than 1 yuan. According to Article 9.2.1, Paragraph 1, Item 1 of the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange, if a listed company that only issues A shares on the Shanghai Stock Exchange has a daily closing price of less than RMB 1 for 20 consecutive trading days, the company's shares may be terminated from listing and trading by the Shanghai Stock Exchange.

Overseas Warning //

1. Southwest Airlines expects Boeing's deliveries to decline, and the lack of capacity will become more and more severe

U.S. airline giant Southwest Airlines continues to be one of the U.S. airlines most affected by the sharp drop in Boeing 737 MAX passenger aircraft production, thanks to increased safety inspections and regulatory oversight that Boeing has faced. The Dallas-based aviation giant currently expects to deliver only about 20 aircraft in 2024, compared to 46 previously, sources said.

2. U.S. Steel and Nippon Steel consider postponing the date of completion of the M&A transaction

U.S. Steel and Nippon Steel are considering a decision to officially postpone the expected completion of the controversial $14.1 billion deal, according to people familiar with the matter. The two steelmakers are expected to announce that they now expect the deal to close in the second half of 2024. In contrast, the current guidance is to be completed in the second or third quarter of this year. Considering that the second quarter is nearing the halfway point and the acquisition deal is embroiled in a whirlpool of political battles, the move will be more of a formality.

3. JPMorgan's net interest margin shrank by 4% quarter-on-quarter in the first quarter

JPMorgan Chase's first-quarter net interest margin income was $23.08 billion, up 11% year-on-year, but it shrank 4% quarter-on-quarter while the benchmark interest rate remained unchanged. Jamie Dimon, the company's CEO, explained that the main reasons are the pressure on deposit rates and the decline in the size of deposits. The Company expects both the NII and the normalization trend of loan loss provisions to continue.

4. Apple lost the App Store monopoly case, and the British court refused to reject the nearly $1 billion claim

Apple's attempt to dismiss a nearly $1 billion lawsuit, led by competition law professor and economist Sean Ennis, accused Apple of charging unfair commissions of up to 30 percent on app purchases and other content from more than 1,500 U.K. developers.

5. Epic took advantage of the victory after winning the antitrust lawsuit to challenge the monopoly of Google AppMarket

Epic Games has taken a step further in its ongoing legal battle with Google, filing a mandatory request with a federal judge in California in hopes of breaking the Google Play Store market monopoly and increasing more competition in the market. The motion comes after Epic Games won an antitrust case against Google, which showed that Google was abusing its position as a portal to the Android app market.

6. Depositors are looking for high-yield products, and Wells Fargo's NII in the first quarter fell short of expectations

Wells Fargo's first-quarter net interest income (NII) came in lower than expected, suggesting that slower loan growth and increased pressure to pay more deposits are eroding the benefits of interest rate hikes. The company's NII revenue for the first three months of this year was $12.2 billion, down 8% from a year earlier and slightly below analysts' expectations of $12.3 billion. However, the company's overall revenue was still higher than expected due to higher investment advisory fees and brokerage commissions.

Financial Interbank Warning //

1. State Council: Establish a "blacklist" system for intermediary agencies

The State Council issued the "Several Opinions on Strengthening Supervision and Preventing Risks and Promoting the High-quality Development of the Capital Market". It is mentioned that the responsibility of the whole chain of issuance and listing will be strengthened. Further consolidate the main responsibility of the exchange for review, improve the establishment and operation mechanism of the stock listing committee, and strengthen the supervision of the whole process of committee members' performance of duties. Establish a mechanism for retrospective accountability and accountability for audits. Further consolidate the primary responsibility of issuers and the "gatekeeper" responsibilities of intermediaries, and establish a "blacklist" system for intermediaries. Adhere to the principle of "declaration is responsibility", and strictly investigate illegal issues such as fraudulent issuance.

2. The China Securities Regulatory Commission (CSRC) solicited public opinions on the revision of the "Provisions on Strengthening the Supervision of Listed Securities Companies".

The China Securities Regulatory Commission (CSRC) solicited public opinions on the revision of the "Provisions on Strengthening the Supervision of Listed Securities Companies", which clearly requires listed securities companies to correct their business philosophy, focus on their main responsibilities and main businesses, put functionality in the first place, actively play the functional role of financial services for the real economy, highlight value creation, shareholder returns and investor protection, implement comprehensive risk management and compliance management requirements for all employees, improve the effectiveness of information disclosure, and play a benchmarking role in standardizing corporate governance. It is required that the IPO and refinancing of securities companies should reasonably determine the scale and timing of financing in combination with shareholder returns and value creation capabilities, their own operating conditions, market development strategies, etc., strictly regulate the use of funds, focus on their main responsibilities and main businesses, prudently carry out high-capital-consuming businesses, and improve the efficiency of capital use.

3. The Dealers Association launched a self-discipline investigation into 6 small and medium-sized financial institutions suspected of holding on behalf of others

The Dealers Association said that it has recently found that some small and medium-sized financial institutions are suspected of illegal holding and lending bond accounts, and decided to launch a self-discipline investigation against six small and medium-sized financial institutions. Recently, market institutions have reported that some employees of small and medium-sized financial institutions have conspired with outsiders to take advantage of the expected decline in treasury bond interest rates to hold on behalf of others and transfer benefits. All market members should strengthen internal control, attach great importance to the compliance inspection of bond business, and avoid the occurrence of such violations of laws and regulations.

4. Ping An Trust responded to rumors: the company's business is in good condition

Ping An Trust issued a statement in response to the rumors of the "company thunderstorm" in the market, saying that due to the overall downturn in the real estate market, Ping An Trust Funing No. 615 Trust Plan was recently postponed, and the company apologized for the trouble caused to customers. At present, Ping An Trust adheres to the principle of maximizing the interests of investors, earnestly fulfills its fiduciary management responsibilities, and is actively promoting the disposal of the project by continuously following up the development and sales of the target project and the return of funds, filing a lawsuit against the repurchase obligor Zhengrong Fang, and promoting the transfer and withdrawal of the target equity held by the trust plan. At present, the company's overall performance is stable and the operating condition is good.

5. Shanghai Gold Exchange: Adjust the margin ratio and price limit of some gold deferred contracts

The Shanghai Gold Exchange announced that, in accordance with the relevant provisions of the "Shanghai Gold Exchange Risk Control Management Measures", the margin ratio and price limit of gold deferred contract trading and the margin of performance guarantee inquiry contract will be adjusted. The relevant matters are hereby notified as follows: starting from the closing liquidation on April 15, 2024 (Monday), the margin ratio of Au (T+D), mAu (T+D), Au (T+N1), Au (T+N2), NYAuTN06, NYAuTN12 and other contracts will be adjusted from 8% to 9%, and the limit on the rise and fall of the next trading day will be adjusted from 7% to 8%; The margin of CAu99.99 contract has been adjusted from $45,000 per lot to $51,000 per lot.

Industry Warning //

1. The State Council: Deploy and carry out the whole chain rectification of potential safety hazards of electric bicycles

The National Standing Committee pointed out that in recent years, the fire accidents caused by electric bicycles have increased rapidly, seriously threatening the safety of people's lives and property, and must be determined to rectify them. All regions and relevant departments should attach great importance to and cooperate closely to accelerate the resolution of stock risks and effectively curb incremental risks. It is necessary to pay attention to system governance, strengthen standard guidance and regulatory law enforcement, and comprehensively improve the safety level of electric bicycle production, sales, use, parking, charging, scrapping and recycling. It is necessary to pay attention to the combination of dredging and blocking, improve supporting services and support policies, vigorously promote the construction of charging facilities, battery trade-in, etc., and better meet the needs of the masses while strengthening safety supervision.

2. Zhengzhou Cyberspace Administration of China: Conduct interviews, criticism, and education for the operators of self-media accounts that publish information that smears and smears the property market

In order to implement the requirements of the Cyberspace Administration of the Central Committee and the Cyberspace Administration of the Provincial Party Committee to "Clarify and Optimize the Business Network Environment and Rectify the Chaos of Infringing Information Involving Enterprises", the Cyberspace Administration of the Zhengzhou Municipal Party Committee continued to increase pressure on source control and disposal, and promptly interviewed and criticized the owners of self-media accounts such as "Beibei and his wife" who published information that smeared and smeared the property market.

3. The urea market had twists and turns in the first quarter, and the pressure in the second quarter still existed

In the first quarter of 2024, the domestic urea market showed a "down-up-down" trend, but the increase was not as large as the fall, and the overall performance was a volatile downward trend, mainly affected by the high level of Nissan, slowing demand and exports. At the same time, based on the decline in raw material costs and the weak start of compound fertilizer, the overall market situation may be the same as in 2023, but with the support of phased agricultural demand, there may be a rebound.

4. Milk prices are declining, pasture construction is slowing down, and cross-border innovation has become the key to the breakthrough of dairy enterprises

According to the Beijing News, the boom in the construction of large-scale ranches is cooling. Under the double blow of declining milk prices and slowing demand, the dairy farming industry has experienced a difficult year. According to the 2023 financial report, 6 listed and listed dairy farming companies generally increased their income without increasing profits, and only 2 maintained their profitability. Excess milk supply, declining milk prices, and slow market recovery have become high-frequency words in financial reports. Against this backdrop, the boom in large-scale ranch construction that began in 2020 is cooling down. At present, reducing costs and increasing efficiency, developing high-premium specialty milk, and cross-border new business have become the breakthrough measures generally adopted by large animal husbandry groups.

5. Douyin e-commerce: The so-called "Douyin shopping card" is suspected of fraud

The Douyin E-commerce Security Center issued an announcement saying that the platform has never released the so-called "Douyin shopping card" and "Douyin mall shopping card", with "freebies", "preferential prices" and "lucky draws". At the same time, Douyin also launched a warm reminder to remind users to guard against the risk of fraud.

A new round of delisting reform has been launched, and the strictest new regulations are coming

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