Simplify The Procedures Of Delisting Companies And Promote The Quality Of Delisting

After several discussions, the top-level design documents around the quality improvement of listed companies have finally been implemented.

Recently, the State Council issued the opinions on further improving the quality of listed companies (hereinafter referred to as the opinions). It is pointed out that improving the quality of listed companies is the internal requirement to promote the healthy development of the capital market and an important content of accelerating the improvement of the socialist market economic system in the new era.

As early as 2005, the State Council issued the notice of the State Council approving and transmitting the opinions of the CSRC on improving the quality of listed companies. Since then, the discussion on improving the quality of listed companies has never stopped in China.

In November 2019, during his investigation in Zhejiang Province, Yi Huiman, chairman of China Securities Regulatory Commission, disclosed that the CSRC system has formulated an action plan to improve the quality of listed companies and has promoted the introduction of relevant documents. The executive meeting of the State Council on September 23 of this year also made plans to further improve the quality of listed companies, protect the rights and interests of investors, and promote the sustained, stable and healthy development of the capital market.

After several meetings of the State Council, the final discussion was made on the "top-level document" of the State Council. The deployment of the national top-level design will improve the quality of listed companies to a new height, and the coordination of various departments will be more systematic. " An analyst at a securities firm in North China said.

Series of "combination fist" to promote listed companies to be better and stronger

"The landing of the top-level design documents shows that the state pays great attention to the sustainable development of enterprises." Chen Li, chief economist of Sichuan financial securities and director of Research Institute, pointed out to reporters of the 21st century economic report that emphasizing the guidance of high-quality development of enterprises is not a new concept, but it is particularly important at the time of industrial upgrading and great changes in the global economic environment. Chinese enterprises need to find their own way to strengthen enterprises, break technical barriers and improve global competitiveness.

In order to shape a strong enterprise in China, the opinions put forward that the registration system of securities issuance will be comprehensively implemented and implemented step by step. We should strengthen the cultivation and guidance of enterprises to be listed, and improve the standardization level of enterprises to be listed. We should give full play to the positive role of equity investment institutions in promoting corporate governance optimization, innovation and entrepreneurship, and industrial upgrading. In addition, the national small and medium-sized enterprise share transfer system, regional equity market and property rights trading market will also play a positive role in the cultivation of high-quality listed companies in the future.

"We will cultivate technology-based and innovative enterprises, and support the development and growth of enterprises such as the single champion of manufacturing industry and the specialized and special new" little giant. " In the opinions issued by the State Council, it has made a relatively accurate description of the high-quality enterprises that will support the listing in the future.

While improving the quality of listed companies from the source, the Opinions also promote the listed companies to be better and stronger in three aspects: Merger and acquisition, refinancing and incentive mechanism.

Among them, the opinions pointed out that the system of asset restructuring, acquisition and split listing of listed companies will be improved; domestic listed companies will be supported to issue shares to purchase overseas high-quality assets; more qualified foreign investors will be allowed to make strategic investment in domestic listed companies; and channels for social capital and other multi-party participation in merger and reorganization of listed companies will be studied and broadened. At the same time, we should support all kinds of listed companies to establish and improve the long-term incentive mechanism, so as to better attract and retain talents and fully mobilize the enthusiasm of employees of listed companies.

What is more worth mentioning is that the SFC has relaxed the refinancing policy during the year and improved the efficiency of refinancing audit through classification audit. The opinions once again pointed out that it will improve the conditions for the refinancing of listed companies and study and launch more convenient financing methods. Support listed companies to carry out long-term debt financing by issuing bonds. We will explore the establishment of a long-term assessment mechanism for institutional investors to attract more medium and long-term funds into the market.

Chen Li pointed out that stable cash flow is a long-term support for the development of enterprises, so it is urgent for enterprises to better direct financing in the capital market and use funds for enterprise development. Combined with the current market registration system reform, it will further optimize and accelerate the efficiency. "In addition, allowing more capital to participate in some excellent enterprises for a long time will also be conducive to the development of the capital market and enterprises."

"Generally speaking, in promoting the listed companies to become better and stronger, the opinions have reflected the registration system, merger and acquisition, refinancing, equity investment institutions, share transfer system, regional market, equity incentive and other elements, almost covering the whole process of a company from start-up to stable listing. Such a systematic "combination fist" is bound to play a positive role in improving the quality of listed companies. " An analyst at a listed securities firm in North China said.

Survival of the fittest improves the investability of a shares

In addition, the listed companies lack the ability to obtain high-quality financing and get rid of the market.

"From the perspective of fairness, fairness and openness of the market, there is an important manifestation, that is, the survival of the fittest." Chen Li said.

The opinions issued this time put forward that the delisting standards should be improved, the delisting procedures should be simplified, and the delisting supervision should be strengthened. We will severely crack down on the behavior of maliciously evading delisting through financial fraud, profit transfer, and market manipulation. We should strengthen the investigation of the responsibility of the illegal subjects. We will support investors to safeguard their rights and interests in accordance with the law and protect their legitimate rights and interests.

In addition, the regulatory authorities also proposed to broaden diversified exit channels, that is, to smooth the diversified exit channels of listed companies, such as active delisting, merger and reorganization, bankruptcy reorganization and so on. Support listed companies to clear risks through mergers and acquisitions, bankruptcy reorganization and other ways.

In this regard, Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology, said that in the future, the new delisting system of abolishing the suspension of listing, abolishing the resumption of listing and abolishing the re listing of the science and technology innovation board market should continue to be implemented in the whole A-share market, so as to make the transfer of interests and the protection of the shell lose effect. On the other hand, through the absorption and merger of listed companies to achieve active delisting, not only can effectively integrate resources, realize the listed enterprises to become bigger and stronger, but also let the junk stocks or zombie stocks withdraw in time, which is helpful to improve the quality of listed companies and smooth exit channels.

In line with the delisting system, the Opinions also proposed to increase the penalties for fraudulent issuance, illegal information disclosure, market manipulation and insider trading. At the same time, we should promote the revision of relevant laws and regulations, increase the administrative and criminal legal liabilities for illegal acts such as financial fraud and fund occupation, improve the securities civil litigation and compensation system, and substantially increase the cost of violations of laws and regulations by relevant liability subjects.

Yang Delong, chief economist of Qianhai open source fund, said that improving the quality of listed companies is conducive to the gradual maturity of A-share market and the important transformation from financing to investment. At the same time, it will improve the investability of A-share market, which is conducive to the long-term healthy development of A-share market.

"The next 10 years will be a decade when China's capital market will usher in major development opportunities. Under the strict control of real estate, the trend of large transfer of residents' savings to the capital market has been formed. Good quality listed companies will still be the focus of all kinds of capital investment. Adhering to value investment and doing fundamental research are the most important investment strategies to share the achievements of A-share market. " Yang Delong said.