The influence and development of the system of delisting of gem

The "Gem Stock Listing Rules" (revised 2012) (hereinafter referred to as "Gem listing Rules"), officially released by the Shenzhen Stock Exchange yesterday, have been in place for some time. The implementation of this system has brought certain stimulation and restraint to the market.

In the launch of the GEM listing rules, the Shenzhen Stock Exchange has expressly suspended the listing of listed companies to resume listing, must be suspended during the main business has not undergone major changes and has sustainable profitability, such as four rules.

"Shenzhen This measure of refinement, basically the current market in the ubiquitous ' backdoor ' the door of the listing of the death, rather than just stay in ' do not support ' stance above. "said the head of a brokerage investment banking business. More analysts pointed out that "gem out, the motherboard is not far."

Stop listing 23 red lines

Gem Suspension of the listing of 11 conditions, including three consecutive losses, the most recent year net worth of negative assets (previously defined as two years); retroactive adjustment of previous annual financial accounting reports, resulting in negative net assets at the end of the last year; two-year audit report negative or refusal to express views Non-standard opinions are related to the obvious violation of corporate accounting standards, systems and related information disclosure regulations, not corrected within 4 months. Shenzhen said that the non-standard views to make provisions, is to prevent the company through financial accounting reports to issue non-standard unqualified audit opinion to circumvent the suspension or termination of the listing conditions.

Gem Termination of the listing has 23 conditions, contains three public condemnations of Shenzhen in the last three years, with the company's shares trading at a daily closing price of 20 consecutive trading days below the par value per share, and 120 consecutive trading days with a cumulative share turnover of less than 1 million shares; net assets at the end of the last two years (2.5) ; Four consecutive years of loss. Among them, the public condemnation indicators, transaction price indicators and trading volume indicators, as a direct exit index, there is no suspension of the transition.

"Only the company can backdoor"

From the formal implementation of the "Gem listing Rules", the concern of the "backdoor listing" situation will be basically shut down.

In the previous programme, the Shenzhen Stock Exchange only stated that it "does not support the suspension of listed companies from resuming the listing through backdoor". And in the "Gem Listing Rules" 2012 revision, the "Resumption of Listing" section of the new "suspension of listed companies to resume listing conditions." A company requesting a return listing must meet the following conditions: No major changes in its main business during the period of the moratorium and a sustainable profitability, and a clear limit on the duration of the company's supplemental materials for the resumption of the listing, requiring the company to provide additional material within 30 trading days, after the expiration of Shenzhen will no longer accept applications for new materials, the move is aimed at the situation where the majority of suspended listed companies, which are currently listed through the "backdoor", have delayed the listing and reorganization on the basis of supplementary materials, and the companies that have been suspended for three consecutive years because of the loss or retroactive adjustment for three consecutive years, Should be deducted from the non-recurrent profit and loss before and after the lower net profit as a return to the listing of profit judgment basis, eliminate the use of non-recurrent income to regulate the return of profits to circumvent the market, for three consecutive years of losses and the end of the year due to negative net assets of the company, the annual report disclosed after the suspension of the listing must be issued by certified Public Accountants have no reservations audit report, To resume listing applications.

The bankers said it is a new requirement that the main business does not change and has sustainable profitability, "although the motherboard system has similar requirements, but it is not a necessary condition"; Secondly, the net profit index after deducting non-recurrent profit and loss as the basis for the recovery of the profitability of listed enterprises, It eliminates the "false profits" that are produced by way of debt forgiveness, tax rebates and rewards. The time limit of the supplementary material is clear, then it is more difficult to realize the listing by the major assets reorganization.

Pan to

Agency Share transfer System

In addition, "Gem listing Rules" clear when the business board suspension and delisting companies no longer implement the "Exit Risk warning treatment", instead, it is required to disclose the initial risk disclosure point and the frequency of subsequent risk disclosure for different suspension and listing situations, and to require the disclosure of a risk prompt notice every five trading days. To strengthen the disclosure requirements of risk information for the delisting.

In the case of a company which has been suspended for a continuous loss in the last four years, the disclosure of a risk notification notice for the first termination of the listing is required while the financial periodic report for the fourth fiscal year is disclosed; in the last three years, the public censure of the Shenzhen Stock Exchange has been publicly denounced two times and shall issue the first exit risk notification announcement in the second public reprimand.

For the turnover is too low and the price is too low to trigger the termination of the listing, the Shenzhen special provisions, in the stock 90 consecutive trading days accumulated turnover of less than 750,000 shares, in the next session will be issued to terminate the listing risk notice; Up to 120 consecutive trading days from the beginning of the above, the cumulative turnover achieved through the trading system is higher than 1 million or Shenzhen to make the stock termination of the listing decision. Similarly, the listed company shares appear for 10 consecutive trading days daily closing price is lower than the nominal value of each day, it is necessary to issue a notice of termination of listing risk in the next session, and thereafter disclosed once each trading session.

In addition, the "plan" clear gem implementation of the "delisting period" system, gem delisting companies will be in the delisting board on the transition. Gem after the return of the city, will be unified translation to the agency's share transfer system listed.

"Gem Valuation Level

will continue to downgrade "

Disclosed in the 2011 Annual report of the Gem company, for the first time there was a loss of enterprises to promote technology. Gem listed company's growth is also declining year by year, the first quarter forecast will be the loss of listed companies accounted for 5%. But even so, it is not easy to touch any one of the diversified delisting systems of the gem.

Excluding company bankruptcy, corporate dissolution, such as "Black Swan" incident, to the most easily touched by the profitability indicators, "Gem listing Rules", to continue to lose three years to suspend the listing, continuous loss of four years to terminate the listing. Then, even if the next year, the technology will be the first to suspend the IPO until 2014.

And for trading volume and transaction price indicators, it is difficult to reach. "At present, all the gem shares are 1 yuan, less likely than the face value." "Lu Ying, deputy director of the Finance department at Peking University School of Economics, said now the gem valuation are very high, are issued at higher prices, from nearly hundred to 1 yuan below, the possibility is very low, even the worst" st "stocks, have not fallen below par," and 20 consecutive trading days below par, Then I use a little money on the 19th trading day to pull the share price, and then do not return the city? ”

In Lu Ying words, the gem delisting system "or more symbolic", a company listing is a multi-stakeholder game, if the conditions for the withdrawal of the market is too strict, there will be some interest to raise objections, so the conditions for the withdrawal of the market to make more lenient, to a large extent, for the interests of all parties to balance.

However, although it has not yet been proved to be a necessary link, the overall stock price and valuation of the gem have been stepped up since the programme was released to society last November. From the release of the plan to the January 19 phase of the low, the gem index fell by as much as 56.72%; the same period, the Shanghai Composite Index declined only 3.54%.

QI, analyst at the Research Center of the Qing Branch, pointed out that the introduction of the Gem delisting system will also make the Gem valuation level continue to decline. Gray Investment Management company general Manager Zhang Kexing also believe that the future funds will gradually transfer to blue chips, many gem stocks also have a larger decline in space, "in fact, the strategy has been very obvious, management has told us how to operate." Zhang Xing said.