The strictest new delisting rules continue to be powerful.
On the evening of May 12, Special Information, Strait Chuang, and Huijin Shares successively disclosed relevant announcements, and received regulatory measures or administrative penalties from the local securities regulatory bureau. The financial reports of the three listed companies all contained false records, touching the ST situation.
On May 13, the special information, Strait Chuang, and Huijin shares were collectively suspended for one day, and the company's shares will resume trading from May 14, and the shares will be ST after the resumption of trading.
On May 13, the ST sector set off another wave of falling limits, and nearly 50 shares such as ST Sansheng, ST iKang, ST Dongshi, and ST Spring fell to the limit.
The survival of the fittest in A-shares accelerated, and 9 companies were delisted during the year
On April 12, the new "National Nine Articles" of the capital market were released, further emphasizing "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the reform of the delisting system and accelerating the formation of a normalized delisting pattern that should be withdrawn and cleared in a timely manner", and on the same day, the China Securities Regulatory Commission issued the "Opinions on Strictly Implementing the Delisting System", followed by the three major exchanges in Shanghai, Shenzhen and North revised the delisting rules to further tighten the delisting standards. On April 30, the Shanghai and Shenzhen Stock Exchanges officially released the relevant delisting rules.
Under the strict delisting criteria, the speed of A-share liquidation of inferior listed companies is accelerating. According to incomplete statistics, since the beginning of this year, nearly 30 A-share companies have been locked in and delisted, of which 9 have been delisted.
Analyzing the specific reasons, the financial category is still the hardest hit area. Nearly 10 companies, including *ST Zuojiang, *ST Carbon Yuan, *ST Mall, *ST Tongda, *ST Tai'an, *ST Mid-term, *ST Yuancheng, *ST Yuebo, *ST Sansheng, *ST Xinfang, etc., were locked in delisting due to the failure to improve their performance in the 2023 annual report or were issued with "non-standard" audit opinions, touching the financial delisting situation.
In addition, more than 10 companies, including *ST Minkong, *ST Meisheng, *ST Meishang, ST Zhongnan, *ST Shimao, *ST Baoli, ST Guiren, ST Hongda, *ST Aidi, *ST Oceanwide, *ST Bolong, *ST Huayi, etc., have locked in the trading delisting situation because they have touched or will touch the situation of "the closing price is less than 1 yuan for 20 consecutive trading days".
Flush data shows that as of the close of trading on May 13, 41 of the 176 constituent stocks in the ST sector have been trading below 1.5 yuan per share.
It is not difficult to find that the scope of influence of listed companies involved in the new regulations has been significantly expanded, and the newly revised delisting rules have added three new types of regulatory delisting situations to enhance the binding effect of listed companies' standardized operations.
Among the three companies that disclosed the announcement on May 13, the special information announcement showed that there were false records in the annual report for five consecutive years. At the same time, a number of former executives of the company, including the former chairman, are planned to be fined up to 4 million yuan per person, and are proposed to be banned from the capital market for up to 10 years.
According to the announcement of Strait Innovation, due to suspected violations of laws and regulations, the Zhejiang Securities Regulatory Bureau intends to decide to give a warning to the company and impose a fine of 600,000 yuan; gave warnings to the then executives Huang Henry, Xiang Jian, and Huang Menma, and imposed fines of 300,000 yuan each; Zhou Weili, the executive at the time, was given a warning and fined 200,000 yuan.
According to the announcement of Huijin shares, the company's 2021 annual report contained false records and failed to disclose major matters as required, and the Hebei Securities Regulatory Bureau decided to give a warning to the company and impose a fine of 2 million yuan.
The ST sector set off a downward trend
Recently, the stock prices of ST companies have fallen sharply one after another.
Some analysts said that the sudden fall of the ST sector may be due to the fact that a group of "new members" who have just been exposed to risks in the sector have been ushered in. With the official end of the A-share annual report season, the problems of some listed companies have emerged.
According to Flush data, at least 40 listed companies changed their stock abbreviations on May 6. Previously, on April 30, these companies announced the suspension of trading, prompting that they would be subject to delisting risk alerts or other risk warnings, and would be "capped" due to various risk issues.
On May 8th, May 9th, and May 10th, *ST Longjin deviated from the closing price of -12% in three consecutive trading days.
On May 13, the Shenzhen Stock Exchange issued an announcement on the inquiry into the annual report of Kunming Longjin Pharmaceutical. The announcement pointed out that from 2019 to 2023, the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses has been negative for five consecutive years, so it is necessary for *ST Longjin to explain the reasons for the continuous losses and explain whether there is significant uncertainty about the company's ability to continue operations.
As of the close of trading on May 13, Longjin Pharmaceutical has fallen for the sixth consecutive trading day.
On May 8, May 9 and May 10, *ST Zhongrun deviated from the closing price by more than 12% for three consecutive trading days. At 9:30 on May 13, *ST Zhongrun hit the fall limit at 3.55 yuan per share, a new low in February.
On April 30, *ST Zhongrun announced that the company's 2023 annual financial report auditor issued an audit report with a paragraph of "material uncertainty related to continuing operations" that could not express an opinion and an internal control audit report that could not express an opinion, and the net profit before and after deducting non-recurring profits and losses in the last three fiscal years was negative, and the company's shares will be subject to delisting risk warning and other risk warning situations.
On May 8, May 9 and May 10, *ST Gaosheng deviated from the closing price by more than 12% for three consecutive trading days. At 9:30 a.m. on May 13, *ST hit the fall limit.
On May 9, *ST issued a risk warning announcement that the closing price of the company's shares on the previous trading day was lower than 1 yuan for the first time since the promulgation of the new regulations, and there was a risk that the listing may be terminated because the stock price was lower than the par value. In addition to the stock price of less than 1 yuan, ST Gaosheng also consolidated the audited net assets at the end of the period in 2023 with a negative value, and the net profit before and after deducting non-recurring gains and losses in the last three fiscal years is negative, whichever is lower, and there are multiple risks such as uncertainty in the company's ability to continue operations in the past year, illegal guarantees and occupation of non-operating funds.