Forced Delisting Enhances Investor Confidence In The Market

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< p > this will largely enhance investor confidence in the market.

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< p > July 4th, the long awaited reform of the new round of delisting system was officially launched. The SFC invited the public to solicit opinions on the reform, improvement and strict implementation of the delisting system of listed companies (Draft).

Among them, the "fraud issuance and major information disclosure violations" included in the mandatory delisting conditions become a major highlight of the current round of market delisting system.

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< p > "delisting opinions" is clear, the company's suspension of listing is issued for the fraudulent issuing company; the company's suspension of listing of the major information disclosure law is suspended, and the deadline for listing a major violation of the law is terminated.

If a listed company is guilty of fraud or serious information disclosure, it is decided by the SFC to make an administrative penalty according to law or pferred to the public security organ by the SFC on suspicion of a crime. The stock exchange shall suspend its listing and trading.

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Dong Dengxin, director of the Financial Securities Research Institute of Wuhan University of Science and Technology, said in an interview with the Securities Daily, that the local delisting system has added new content to the compulsory delisting system. The past forced delisting was mainly a compulsory delisting for financial indicators, and the SFC once again enriched the connotation of the compulsory delisting. In addition to fraud listing, the first introduction of the terms that companies with major information disclosure will force their delisting.

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< p > Dong Dengxin said that for the existence of major information disclosure violations and some other illegal situations, the future regulatory authorities need to be further defined, such as what kinds of situations can be identified as major offences in information disclosure.

At the same time, the provisions of the current delisting system on illegal disclosure of information will have obvious effects on the quality of information disclosure in the future, including information disclosure of IPO, regular and temporary information disclosure of listed companies, all of which will bring certain deterrent effect to the new clause "a href=" //www.sjfzxm.com/news/index_q.asp "delisting system < /a >.

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< p > Dong Dengxin believes that the provisions of illegal issuance of fraud and major information disclosure will enhance the integrity and legal awareness of listed companies, because the mandatory delisting of major violations is a very serious punishment for listed companies, which will directly condemn the "death" of the listed companies with major violations.

Therefore, "fraudulent issuance and illegal disclosure of major information" will become a powerful mechanism to restrict listed companies.

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< p > "to include the issuance of fraudulent issuance and the disclosure of major information in a compulsory market delisting condition will also enhance investor confidence in the market to a large extent."

Dong Dengxin emphasized that fraudulent issuance and major information disclosure violations are acts that the market hates, and listing them in the delisting conditions is also a expectation of the market. Moreover, investors' reliance on information disclosure is strong. Investors' decisions depend on the authenticity and integrity of information disclosure. These new provisions will improve the quality of information disclosure of listed companies, and provide investors with sufficient and effective investment decision-making basis.

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< p > in addition, Dong Dengxin believes that the illegal issuance and disclosure of major information should be included in the mandatory delisting conditions, which will indicate the direction for further improvement of the delisting system. Whether the delisting system and the future registration system will put the quality, integrity and authenticity of information disclosure in the most important position, this is also a basic institutional arrangement to protect the interests of < a href= "//www.sjfzxm.com/news/index_c.asp > investors.

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