Reporter: Yang Jian Editor: Wang Yuelong, Ye Feng
On April 12, the new "National Nine Articles" and a series of supporting measures and draft drafts for the securities regulatory system were introduced. In order to implement the new "National Nine Articles", the exchange intends to include companies that have not paid dividends or have a low dividend ratio for many years into ST, which has triggered a wide discussion in the market, which is obviously a blockbuster positive but has been interpreted as negative, and even calculated that "more than 1,000 companies in A shares will be ST due to unqualified dividends", which has caused heated discussions in the market.
Some senior market investors said that many investors have deviated when interpreting this policy, and since it is to solicit opinions, there must be a process of feedback, modification and improvement, and it is not implemented immediately. In addition, listed companies also have two ways to remedy. Urging listed companies to increase the proportion of dividends is the original intention of supervision.
Photo by Wen Duo, Daily Economic News
The inclusion of dividends in ST that does not comply with the new regulations has caused heated discussions in the market
Wind data shows that as of 2022, the proportion of A-share listed companies that have paid dividends for 10 consecutive years is 31%, lower than the 44% of the US market and even lower than the 76% of the Japanese market. Judging from the data, the overall dividend rate of A-shares has been continuously increasing in recent years, and has remained above 30% all year round, and the data has reached 36.06% in 2022.
Cash dividends are one of the most direct and effective ways for listed companies to return to investors, in order to implement the new "National Nine Articles", the exchange intends to include companies that have not paid dividends for many years or have a low dividend ratio into ST, which has triggered extensive discussions in the market. However, for the new dividend regulations, many investors have deviated when interpreting this policy, and some people have calculated that there may be hundreds or thousands of companies in the A-share market to be ST according to the dividend standards in the new dividend regulations, and even listed a list of companies that may be ST stocks.
It is worth noting that some investors believe that there is a premise for being ST, and the listed companies with positive net profits and positive undistributed profits in the last year will only ST if they do not meet the conditions for dividends, and if the net profit loss and undistributed profits in the last year are negative, the company will not ST; secondly, there are also trigger conditions, only if the cumulative dividend of three years is not met at the same time, it reaches 30% and companies that do not meet the dividend amount will be ST, and only one of the two will not be ST, and it will only start in 2025, and companies that meet the dividend conditions will have enough time to complete.
In addition, some senior investors in the market believe that urging listed companies to increase the proportion of dividends is the original intention of supervision. Since it is to solicit opinions, there must be a process of feedback, modification and improvement, which is not implemented immediately, and some specific financial requirements or indicators in the middle cannot be ruled out in the future. In addition, the exchange also clearly gave a timetable for the implementation of the new dividend regulations, which will be officially implemented from January 1, 2025, for listed companies that have not met the dividend requirements, there are still two opportunities for remediation: one is the company that has not yet issued an annual report, and there is still time to modify the dividend plan and increase the dividend ratio;
Industry insiders: A compensation system for illegal fraud and delisting should be established
In addition to the dividends that do not comply with the new regulations and are included in the ST caused heated discussions in the market, yesterday the China Securities Regulatory Commission formulated the "Opinions on the Strict Implementation of the Delisting System" also gave the market a lot of shock, and all parties in the market formed more consensus on delisting, especially for some serious fraud and long-term fraud companies, companies with major defects in internal control should be delisted immediately. The "Delisting Opinions" have increased the liquidation of "zombie shell" companies through strict delisting standards, and reduced the value of "shell" resources.
The first is to strictly enforce the criteria for mandatory delisting, 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 cases of serious fraud for one year and continuous fraud for many years. The second is to further unblock diversified delisting channels, encourage and guide leading companies to increase the integration of the industrial chain based on their main business. The third is to reduce the value of "shell" resources, strengthen the supervision of mergers and acquisitions, and strengthen the supervision of "backdoor listing".
Fourth, it is necessary to 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". Strictly implement the delisting system and crack down on financial fraud 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. In this regard, some private equity people said in the circle of friends that the quantifiable and enforceable compensation system for illegal fraud and delisting is the foundation for rebuilding the credibility of the stock market, and compensation can be considered according to the difference between the issue price and the closing price of the delisting.
Chongyang Investment told reporters that the reform of the delisting system introduced by the China Securities Regulatory Commission is a further improvement of the basic system of the capital market, and reflects the regulator's firm determination to improve the quality of listed companies and promote the healthy development of the market. By reducing the number of years, amount and proportion of delisting triggered by financial fraud, the regulator intends to strengthen market discipline and increase the cost of violating the law, so as to effectively curb financial fraud and protect the interests of investors. The reform of the delisting system will have a positive impact on the market in the following aspects, first of all, through strict delisting standards, especially for financial fraud and other illegal acts, the market will pay more attention to compliance and transparency, which will help improve the quality of the overall market operation.
Infore Capital also told reporters that the new rules on delisting reflect the determination of the regulator to purify the market environment and safeguard the rights and interests of investors. The reform of the delisting system will have a positive impact on the market: first, the market environment will be purified, and the strict delisting system will accelerate the elimination of inferior enterprises, improve the overall quality of listed companies, and optimize the allocation of market resources. The second is to protect the rights and interests of investors, and the new delisting regulations will effectively reduce the speculation of "shell" resources, reduce market risks, and protect the legitimate rights and interests of investors. The third is to enhance the vitality of the market, and the improvement of the survival of the fittest mechanism will promote listed companies to enhance their competitiveness, enhance market vitality, and promote the healthy development of the capital market. In general, a strict delisting system is a necessary condition for the healthy development of the capital market, which is conducive to enhancing the international competitiveness of China's capital market.
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Editor|Wang Yuelong, Ye Feng, Gai Yuanyuan
Proofreading|Lu Xiangyong
|National Business Daily nbdnews original article|
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