China'S Stock Market: Why Is It So Hard For The Listed Companies To Withdraw From The Market?

At present, the volatility of China's stock market is very low, and the market still takes stock capital as the leading factor to accelerate the issuance of IPO unilaterally. The final result will lead to a persistent stalemate in the stock market and a continuous decline in the efficiency of money making.

As a result, under the background of large scale expansion of stock market, the intensity of stock market delisting needs to be strengthened in essence, and the delisting standards and supporting measures need to be accelerated to improve the market delisting rate, so that the listed companies that should be delisting should resolutely clean up and let the market realize the survival of the fittest in the true sense.

Since the delisting has been said for many years, there is no substantial effect, Jiang Yang, vice chairman of the China Securities Regulatory Commission, said it is actively revising the delisting standard.

Since the beginning of this year, specific measures have been implemented, including strengthening information disclosure, modifying and improving the criteria for delisting, and strengthening the supervision of exchange frontline.

The word "delisting" has once again caused widespread heated debate in the market.

"Listing is difficult, and delisting is more difficult" is a true portrayal of China's stock market for many years.

Up to now, the total number of Listed Companies in China's stock market has exceeded 3000.

At the same time, looking at the historical data, China's stock market broke through 2000 listed companies, but the time used to break through the 1000 listed companies was not very different, while breaking through the 3000 listed companies was more short-lived than breaking through 2000 listed companies.

Thus, with the continuous acceleration of stock market expansion, the speed of issuing new shares in China's stock market has also increased significantly. The sharp rise in total market capitalization of stock market has also largely relied on the substantial increase in the stock market's expansion.

On the one hand, the rate of expansion of the stock market continued to accelerate, and the total number of listed companies kept increasing. On the other hand, the stock market delisting rate continued to slump, and even in the past few years, no delisting stocks were in existence.

It can be seen that in China's stock market, apart from the form of merger and acquisition, there are few listed companies that really touch the delisting due to factors such as financial indicators.

Since 2001, the delisting of PT narcissus to the delisting of stocks such as *ST long oil, *ST Guo Heng and *ST Bo Yuan has been very few in the market.

As for the GEM market for many years, it is only for many years that Xintai Electric has been forced to withdraw from the market because of fraud, and the overall delisting situation is worrying.

In terms of the current situation, China's stock market is difficult to list, but once it is issued and listed, it often means that the value of major shareholders of listed companies soar and the market value of stocks is greatly improved.

However, for many

As long as the completion of the listing task, even though the company's profit situation is not good, and even a continuous loss, it can also use various means to complete the shell preservation process.

What's more, they also take special care of their unique local shell resources, and finally realize the myth of many rounds of "crow changing Phoenix".

Obviously, many listed companies have made full use of the loopholes of the delisting rules for many years, trying to avoid the risk of delisting.

At the same time, due to the substantial improvement of the shell value of the listed companies, and the IPO dammed lake problem has not been solved in essence, it has also prompted the companies that have not yet completed the listing to take the strategy of backdoor listing and even listing in disguise, and finally strengthened the pattern of the stock market.

Among them, if the latest version of the delisting conditions,

In order to achieve the goal of re listing, the latter enterprises need to meet "the net profit in the last three accounting years is positive and total accumulated more than RMB 30 million yuan". "The net cash flow generated by operating activities in the recent three fiscal years has totaled more than RMB 50 million yuan", or "the total revenue of the last three fiscal years has totaled more than RMB 300 million yuan".

This shows that once a listed company is able to withdraw from the market, the possibility of re applying for listing is negligible.

As for some listed companies which have been forced to withdraw from the market due to fraudulent issuance and financial fraud, their chances of re applying for listing will be even lower, or even the possibility of re listing.

As a result, it is reflected in the market, that is, "difficult listing, more difficult to withdraw" situation.

However, when enterprises fail to pull out of the market, the difficulty of re applying for listing will be multiplier.

In the past 16 years, the total number of Listed Companies in China's stock market has been less than 100, but the number of entrepreneurs who completed the listing in the same period has increased by several times, which obviously aggravated the diversion pressure of market funds.

It can be imagined that in the face of the stock market with a total volume of more than 3000 listed companies, only the stock fund can not sustain the long-term strength of the market. Under this influence, the market can only realize partial investment opportunities, and the possibility of rising and falling is greatly reduced.

However, it should be noted that in the process of strengthening the delisting of the market, we still need to further accelerate the efficiency of the claims and improve the civil compensation mechanism.

At the same time, it is necessary to take strict supervision measures to the relevant intermediaries and relevant stakeholders to further enhance the cost of illegal activities in the market, and not allow investors to become victims of the delisting of listed companies, and create favorable safeguards for their vital interests.

In this way,

By strengthening the delisting efforts and raising the overall delisting rate, it can also play a role in protecting investors and activating the market, which is conducive to the long-term healthy development of China's stock market.

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