On March 29, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued the “Opinions on Promoting the Construction of a Social Credit System with High-Quality Development and Promoting the Formation of a New Development Pattern” (“Opinions” for short) The department conscientiously implements it according to the actual situation.
In Chapter 4, the “Opinions” emphasize the need to strengthen the credit construction of the capital market and strengthen market credit constraints.
Focusing on “strengthening the construction of creditworthiness in the capital market”, the “Opinions” proposes to further consolidate the foundation of the rule of law and creditworthiness in the capital market, improve the creditworthiness archives in the capital market, and enhance credit awareness and contractual spirit . Consolidate the information disclosure responsibilities of relevant entities and enhance market transparency. Establish a credit commitment system for administrative licensing in the capital market to improve handling efficiency. Urge intermediary service agencies to be diligent and responsible, and improve the professional ethics of employees. Strictly implement the compulsory delisting system, and establish a virtuous cycle mechanism for the survival of the fittest among listed companies. Strengthen the protection of investors’ rights and interests, and create an honest and trustworthy financial ecological environment.
Focusing on “strengthening market credit constraints”, the “Opinions” put forward: give full play to the role of credit in the identification, monitoring, management, and disposal of financial risks, and establish and improve the The risk prevention and resolution mechanism of “discovery, early warning, and early disposal”. Support financial institutions and credit reporting, rating and other institutions to use big data and other technologies to strengthen tracking, monitoring and early warning, and improve market-based risk sharing, mitigation, and compensation mechanisms. Adhere to “strict supervision and zero tolerance”, strictly investigate and deal with major illegal cases such as fraudulent issuance, false representation, market manipulation, and insider trading in accordance with the law, and intensify criminal crackdowns on embezzlement and misappropriation of fund properties. We will improve the mechanism for dealing with debt defaults, and severely punish evasion and abandonment of debts in accordance with the law. Strengthen punishment for dishonesty in the field of online lending. The market exit mechanism will be improved, and enterprises that are insolvent and unable to pay their debts can go bankrupt, reorganize or liquidate according to the law, and explore the establishment of a forced exit system for enterprises.
In recent years, delisting has become a normal trend.
In December 2020, the Shanghai Stock Exchange issued the “Shanghai Stock Exchange Listing Rules (Revised in December 2020)”, revising the relevant content related to the delisting system .
The 2021 government work report further proposes: steadily advance the registration system reform, improve the normalized delisting mechanism, strengthen the construction of the bond market, and better play the role of the multi-level capital market. Expand financing channels for market players.
On the evening of February 25, 2022, the China Securities Regulatory Commission stated that in order to adapt to the registration system reform and normalized retirementIn order to meet the requirements of the city and create a good ecology of “in and out, both in and out”, the China Securities Regulatory Commission drafted the “Guiding Opinions on Improving the Post-Delisting Supervision of Listed Companies” and publicly solicited opinions from the public.
Ernst & Young’s audit service partner Tang Zhehui said that at the “export customs”, the delisting conditions are now very clear, and information disclosure and other work have been gradually improved. In the next step, it can be expected that the market is at the “export level”, and the whole is expected to achieve “retire when it should be withdrawn”, which will avoid the problem of too many “ST”.