BEIJING: China is intensifying its efforts to enhance delisting standards, diversify exit channels and strengthen regulatory oversight, as part of the country’s ongoing reforms to improve the efficiency and vitality of its A-share market.
As the reform of the delisting system enters a new phase, companies not meeting the required standards will be promptly removed from the market to the extent possible, which will enhance the overall quality of listed companies and improve the market ecosystem, experts said.
Moreover, a rigorous crackdown on various forms of delisting evasion will be pushed ahead, to provide greater protection for the legitimate rights and interests of investors and to bolster market confidence, they added. The China Securities Regulatory Commission, the country’s top securities watchdog, rolled out a raft of policy measures to strengthen regulation on delisting in mid-April, aiming to create a market environment that rewards quality and fosters sustainable growth.
Any company failing to meet the required standards may face delisting, regardless of the total number of companies affected, said Guo Ruiming, head of the commission’s listed company supervision department, stressing that the number of delistings will not be predetermined.
The delisting system, along with the listing system, constitutes a fundamental pillar of the capital market, forming an integral part of its ecosystem. The presence of both entry and exit mechanisms contributes to a more dynamic and vibrant market environment, said Zhao Wei, an analyst at Founder Securities. Since the implementation of the delisting system reform in 2020, according to data from market tracker Wind Info, a total of 146 companies have been delisted from the A-share market. The majority of these delistings were enforced by regulatory authorities. –The Daily Mail-China Daily news exchange item
