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Kechuang board forced to withdraw from the market can not be re-browsed Daily Economic News



On 30 January, the Securities Regulatory Commission of China issued "Opinions on the establishment of the Shanghai Science and Technology Committee and the Pilot Registration Scheme in Shanghai" ("Implementation Opinions"). The Securities Regulatory Commission of China and the Shanghai Stock Exchange are in favor of setting up a Science and Technology Board and a pilot registration system in line with the requirements of the implementation opinion.

The Daily Economic News reporter noted that the "Implementation Opinions" contain detailed provisions on the abolition of the list of science and technology companies. Apparently to approve an exchange in order to increase market exclusion indicators on the basis of existing decommissioning indicators; in the event of a serious violation of a market order, the investor's rights are seriously damaged and the company fails to remedy within the prescribed time limit, the stock exchange may terminate its stock listing. As far as procedures are concerned, the Science and Technology Council will no longer stop listing, list renewal and re-listing, and the delisting process is more consistent and clearer.

The delisting system is strictly regulated by three aspects

Listing and decommissioning is the "import" and "export" of companies entering the science and technology consultancy market, which is directly related to the position of the science and technology market and the future market ecology. What are the terms of listing and exclusion from Shanghai Stock Exchange listing ("Listing Rules") (hereinafter referred to as "Listing Rules")?

The basic idea of ​​the exchange is to formulate the conditions for a more comprehensive listing and strictly implement the deregistration system to smooth the "import" and "export" of the market. It is worth mentioning that the science and technology council focuses on the implementation of "strictness" on the delisting standard. When designing a delisting system at the Scientific and Technological Council, the current decommissioning procedures are fully utilized and the key points are strictly regulated in terms of standards, procedures and implementation.

First, the standards are stricter. In the event of a mandatory abolition of the list of serious illegal cases, the latest results of the reform of the delisting system have been exhausted and the main illegal violations such as serious unauthorized disclosure and breaches of public safety have been elucidated, volumes and stocks have been created in the event of market exclusion. The four types of decommissioning standards, such as price, number of shareholders and market value, are more complete and complete in terms of financial indicators, with quantitative provisions being made on a qualitative basis and the basic characteristics of the "hollow" enterprise of the main firm losing its ability to maintain operations, are multidimensionally characterized. One permanent loss loss indicator is no longer used. For other compliance indicators, based on the maintenance of existing exclusion indicators, such as failure to provide financial reports on time, issuing irresponsible opinions or negative opinions, and increasing regulatory compliance, such as serious disclosure or standard deficiencies,.

Secondly, the procedure is stricter. Simplify the process of delisting, revoke the divestiture of the listing, and resume the listing process, and immediately put an end to the listing of businesses that should be abolished, avoiding the long-term retention of the major illegal and major corporate "hollows", distorting market expectations and price mechanisms. The company, which has compressed the decommissioning time and touched the Financial Decommissioning Index, will carry out a market exclusion warning in the first year and will continue to be canceled in the second year. No special links will be created to change the list. If they meet the Kechuang Board's eligibility criteria, they can request and accept ratings under registration and publication and listing requirements, but if they are forced to withdraw from the market due to serious infringement, they can not to propose no new ones. Apply for registration and permanently withdraw from the market.

Thirdly, implementation is stricter. An unparalleled problem with the implementation of the existing delisting system is that individual "hollow" businesses have devalued financial data and have avoided delisting goals by executing transactions that are not commercial in nature. In order to resolve this "difficult issue," the R & D system explicitly states that if the operating income of quoted companies predominantly derives from business activities not related to the core business or from income related to transactions that are not of a commercial nature, there is evidence that the company the apparent loss of ability to continue to operate will be canceled in accordance with the prescribed conditions and procedures.

Direct delisting in terms of delisting requirements

On the issue of exclusion from the Science and Technology Committee, "Executive Opinions" explicitly approve an exchange to increase market exclusion indicators based on existing indicators of decommissioning, science and technology companies are fraudulent emissions, key information is illegal or other stakeholders country In case of serious illegal activities in the field of security, public safety, etc. Stocks are terminated if trade indicators such as the volume of share trading of Science & Technology Co., Ltd. end with the termination of the listing criteria, inventories will be terminated, scientific and the technology company loses its ability to continue its activity and financial indicators hit the end of the statement. In the standard, the shares should be reversed, the company does not apply a single indicator of the loss statement and sets a combination termination indicator that reflects the company's ability to continue to operate.

From the procedural point of view, the Kechuang Board of Directors no longer applies the suspension of the statement, renewal of the listing and re-listing, and the delisting process is more concise and clear.

In this regard, Chen Yanli, Capital Capital Management Partner, told the Daily Economic News reporter that the establishment of the Science and Technology Board has increased the supply of technology companies to the market, leading to the false existence of market forces in order to bring truly valuable technology companies to the market. Recognition. In the case of technology companies listed on the stock market, the launch of the Science and Technology Council is a milestone. In the past, the "frozen concept" of pseudo-tech stocks would lose the shortage in the event of increased supply, and there will be a valuation system for these businesses. Change. On the contrary, some enterprises with "real energy" technology will be recognized on the market and funds will be supported by leading enterprises with basic technologies.

In addition, Chen Yanli believes that the Kechuang Board of Directors can dilute traditional indicators such as profitability that helps meet the needs of different types of businesses at different stages of development. Businesses can better focus on their own activities and do not have to dress as it was required in the past. The introduction of the Science and Technology Council has enriched and improved the structure of the multilevel capital market in China. The new sector contributes to new institutional arrangements and contributes to the development and development of the capital market in China. The location of the Science and Technology Council also contributes to the promotion of China's economic transformation and modernization and contributes to the modernization of China's scientific and technological hard power.

Forced deletion of the list will not be reiterated

The Daily Economic News reporter noted that "Executive Opinions" also provide that Science & Technology Co., Ltd. fraudulent release, serious breach of information or other serious issues relating to national security, public safety, environmental safety, production safety, and public health protection. In the case of unlawful activities, the stock is terminated. The Shanghai Stock Exchange also said that the company, which will decompress the company's decommissioning time and touch the Financial Decommissioning Index, will carry out the first year's exclusion warning and will continue to be canceled in the second year. No special links will be created to change the list. If they meet the Kechuang Board's eligibility criteria, they can request and accept ratings under registration and publication and listing requirements, but if they are forced to withdraw from the market due to serious infringement, they can not to propose no new ones. Apply for registration and permanently withdraw from the market.

Chen Yanli believes that the registration system addresses the shortcomings of the existing approval system and has difficulties in meeting the financing needs of newly established businesses and has increased the capacity and methods of local funding for science and technology companies. Secondly, the Scientific and Technological Council has extended the PE / VC output channel, a technology project investment reserve institution, to increase the vitality of the primary market and thus to actively serve the scientific and technological enterprises. Moreover, the registration system reduces rental space, reduces accountability and pressure on regulators, and creates real value through sufficient disclosure of information and market play to achieve the goal of market cleansing. Unlike the previous motherboards, GEM and small and medium-sized boards, the company can intensively optimize the reform from the basic mechanism and relatively flexible institutional arrangements for approval and decommissioning.

Chen Xiwei, a senior private equity analyst, told the Daily Economic News reporter that the launch of the Science and Technology Committee was positive for the stock market and opened up a venture capital exit mechanism to create a true closed loop. The former venture capital market was characterized by long investment periods, low liquidity on the market, limited output channels, etc. Many innovative SMEs faced funding difficulties and started a pilot registration system. The problem is that a "cardiotonic agent" has been injected into China's future macroeconomic development.

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