Recently, Guo Ruiming, director of the Department of Listed Company Supervision of the China Securities Regulatory Commission, gave in-depth answers to hot issues such as dividends and delisting, which are widely concerned by the market, providing authoritative and detailed guidance for investors and the market. Director Guo said that the new regulations aim to reveal corporate risks more accurately and promote the healthy development of the market, and at the same time, some special types of companies are also fully considered.
In response to the ST system, which is generally concerned by the market, Director Guo clearly pointed out that ST is not a delisting risk warning (*ST), and its main purpose is to remind investors to pay attention to the potential risks of the company. He further explained that if the company is ST only because of the "dividend substandard", it will not directly lead to delisting. After meeting certain conditions, the company can apply for the revocation of the ST mark, which provides the listed company with an opportunity to rectify and recover.
It is worth noting that the provisions on the implementation of ST in this "dividend substandard" are mainly applicable to profitable enterprises. For enterprises with high R&D intensity or R&D investment, even if their dividends fail to meet the above conditions, ST will not be implemented. This special provision fully considers the actual situation and capital needs of these enterprises in the course of operation, and reflects the CSRC's support and encouragement for market innovation.
According to Director Guo, based on the 2020-2022 data, the number of companies in Shanghai and Shenzhen that may implement ST due to substandard dividends is only more than 80. This figure is not a high proportion compared to the overall market, indicating that most listed companies still maintain a good performance in terms of dividends.
When talking about the adjustment of delisting indicators, Director Guo said that the adjustment is aimed at increasing efforts to clear out the "zombie shells" and "black sheep", not for "small-cap stocks". He stressed that the improvement of the delisting system is an important measure to optimize the market ecology and improve market efficiency, which will help enhance the health and competitiveness of the entire market.
According to estimates, the number of companies that will be delisted by the Shanghai and Shenzhen stock exchanges next year is expected to be about 30, and about 100 companies may touch this indicator and implement delisting risk warning next year. In particular, Director Guo pointed out that these companies have ample time to rectify and improve in the future, and will only face the risk of delisting if they still do not meet the standards by the end of 2025.
In terms of market capitalization indicators, Director Guo revealed that at present, there are only 4 main board companies in Shanghai and Shenzhen with a market value of less than 500 million yuan, while there are no companies on the Science and Technology Innovation Board and the Growth Enterprise Market with a market value of nearly 300 million yuan. This data shows that most listed companies still maintain a stable performance in terms of market capitalization, and the overall health of the market is good.
Director Guo Ruiming's speech provided the market with clear policy guidance and market expectations. He stressed that the China Securities Regulatory Commission will continue to strengthen the supervision of listed companies, improve the delisting system, and promote the healthy development of the market. At the same time, he also called on investors to look at market fluctuations rationally, pay attention to the company's fundamentals and long-term value, and jointly maintain the stability and prosperity of the market.
The convening of this press conference not only provides an authoritative policy interpretation for the market, but also provides a valuable investment reference for investors. It is believed that with the active promotion of the China Securities Regulatory Commission, the mainland capital market will usher in a better future.
With the implementation of the new regulations, we have reason to believe that listed companies will pay more attention to their own operations and dividends, and strive to enhance the value and competitiveness of the company. At the same time, investors will also look at market fluctuations and the company's risk profile more rationally, and make more informed investment decisions.
In short, the CSRC's answers to hot issues such as dividends and delisting and the adjustment of regulations have undoubtedly injected new impetus into the healthy development of the market. We look forward to a more prosperous and stable future for the mainland's capital market with the joint efforts of all parties.