In the evening of 6 November, the CSRC introduced a document to improve the suspension and re-registration system of companies, clarify the basic principles for suspending trading in listed companies, and standardize the suspension period, disclose information and support mechanisms. After that, the listed companies can no longer be free and long-term. The attack was suspended.
This is another major move for regulatory authorities to improve capital market infrastructure, optimize transaction oversight, reduce trading resistance and increase liquidity in the market!
After 16 months of Vanda's suspension, he started trading again yesterday, after the new suspension of Kangde, more than five months later, continued trading today. Maybe this is just the beginning.
In the 6th century, the Chinese Securities Regulatory Commission issued "Leading Opinions on the Advancement of the Trading System of Registered Company Companies". The main contents include:
The first is to establish the basic principle of the suspension of shares of the joint stock company and the continuation of trading, in order to maximize the protection of trading opportunities.
It is clear that the principle of nonstop is an exception, the suspension is an exception, the exception is the principle of short-term suspension, the long-term suspension is an exception, the interrupt suspension is the principle, and the continuous suspension is an exception. In the event of a major event, the listed company is charged, in accordance with the principle of timely disclosure, in the stages of the disclosure of the specific circumstances of the relevant issues and will not be arbitrarily applied for the suspension of the shares due to the uncertainty of the relevant issues, and does not confuse the obligations of the parties to the confidentiality by filing the suspension request .
The second is to suspend the period for the release of shares and to improve market liquidity.
Further shorten the maximum period of suspension of the main asset reorganization, explain that the principle of the capital stock of the company being traded on the market does not cease during the reorganization of the bankruptcy, during the period of consideration of the Board for monitoring and analysis of the shares of that company will be suspended on the day of the working meeting of the reorganization committee and reorganization. If the stock of a listed company does not resume trading within the prescribed time limit, the stock market will force re-trading.
The third is the strengthening of the requirement to disclose information for suspension of shares and the continuation of trading and clarifying market expectations.
Improve information disclosure standards at the initial suspension, clearly define information disclosure requirements at the critical stage of the suspension period, and strictly apply the disclosure obligations of companies that are listed on the market in the event of a compulsory suspension and continuation of trading.
The fourth is to strengthen the construction of the system and clarify the appropriate support arrangements.
It is clear that, in accordance with leading opinions, the stock market will revise and improve the specific rules for suspension of shares and continue trading, and perform a good job in managing self-discipline and services related to the suspension of trading cards. At the same time, the stock market should establish the time period of the suspension and the mechanism for elimination of the stock index and the disclosure system of suspension information and regularly announces the frequency of suspension of the company's list, the time ranking and the companies that invite the stock market to take measures to reduce the suspension.
Focus 1: Delete the three basic principles of stopping the trade
The first is the principle of careful suspension.
Companies listed in the market should carefully discontinue trading, with the principle of continuous trading, suspension of cards as an exception, short-term card suspension as a principle, long-term card suspension as an exception, termination of the card as a principle, uninterrupted card suspension is an exception, without free suspension or unreasonable postponing trading time and should be taken Effective measures to prevent long-term card suspension and so on.
The second is the principle of phase detection.
If a listing company has a big event and has a long duration, it will, in accordance with the principle of timely disclosure, discover the progress of relevant issues in stages. A company listed on the market can not be arbitrarily applied for suspension of shares on the basis that the outcome of the relevant issues is uncertain.
The third is the principle of strict confidentiality.
The listed company and its shareholders, actual controllers, directors, supervisors, senior executives and other parties in the transaction, as well as securities companies and service providers providing services may have a greater impact on the price of trading in the company's actions when planning and implementation. In the process of essential issues, it is necessary to fulfill the legal obligations of confidentiality, to establish and improve the system of secrecy, and to do a good job in managing information and registering information from the insider. It is not possible to file a request for a suspension of trading in shares of companies on the list instead of the obligations of confidentiality of interested parties.
Key point 2: A sound recovery system and a restart in four aspects
The first is to clarify various arrangements for the suspension of major events.
Stock exchanges should further reduce the types of main issues that companies can apply for suspension of stocks, and make different arrangements for suspension periods, decision-making procedures, and disclosure requirements based on different types of main issues.
The second is to suspend the suspension period of the main events.
The stock market will further shorten the deadline for the said company to apply for a suspension of shares due to major events and clarify the maximum period for suspension of all types of major events. If the company's shares on the list fail to resume trading outside the prescribed deadline, in principle, their shares will be required to continue trading.
In principle, the shares do not stop during the reorganization of the bankruptcy companies. During the reorganization of the bankruptcy procedure, the Stock Exchange will explain the disclosure requirements during the bankruptcy period and may regulate in detail the suspension of shares during the period of the bankruptcy reorganization in accordance with the actual market conditions.
When the CSRC Monitoring and Evaluation Commission examines the application for significant restructuring of the company's listed company, the shares of that company are suspended on the day of the working meeting of the Monitoring, Evaluation and Reorganization Committee.
The third is to apply strictly for a suspension of trading in quoted companies.
When a listed company submits a request for a suspension of its shares, it will abide by the conditions and procedures established on the stock exchange.
The Stock Exchange explains the requirements for self-discipline management for companies on the list to apply for a suspension of shares and adopt a combination of formal review and substantive testing to pay attention to whether that company has sufficient reason for suspension. If the Stock Exchange considers that it does not meet the requirements or is not eligible for the suspension, it shall reject the request for suspension of the shares of that company.
There are extreme abnormalities in the securities market. In order to maintain the continuity of market transactions, stock exchanges may suspend the application for the suspension of shares of the listed companies in accordance with the actual market conditions.
The fourth is to explain the procedures for long-term suspension.
A company listed on the market will deal with issues such as suspension of shares, postponed continuation of trading, etc., If trading stops for a long time, it will act in accordance with the provisions of the stock exchange.
Focus 3: Strengthening the conditions for suspension and continuation of letters in three aspects
The first is to improve the information disclosure standards at the initial suspension.
If a company charges a suspension application for major events, it must disclose information such as the type of main events, the name of the transaction target, the contracting party, the suspension status, the suspension period and the expected time to resume trading, in accordance with the provisions of the stock exchange. The disclosure of information must be clear and specific, and may not be vague or general.
The second is to strictly fulfill the obligation to disclose the obligations of compulsory suspension and resumption of trading.
When an action on the list of companies is obliged to suspend or continue trading on the stock exchange or if the stock exchange rejects the request for suspension and continuation of the shares, it is publicly disclosed in accordance with the provisions of the stock exchange.
The third is the strengthening of the requirement for phase disclosure during the stock suspension of listed companies.
During the suspension of the trading in shares in the company's listing, if the suspension of the relevant items occurs in the exchange of securities, or if there is significant progress or change, the company listed on the market discloses the relevant situation in a timely and peculiar manner in accordance with the provisions of the stock exchange.
A company listed on the market will continue to apply the restructuring plan and draft a phase disclosure system in accordance with the provisions of the stock market, strengthen the disclosure of major asset restructuring plans, and discover and continue trading when project disclosure standards are met.
Focus 4: Do a good job in a related business
The first is to improve the support system, such as the suspension of self-discipline rules.
The Stock Exchange will further improve the self-discipline rules for the suspension and continuation of the stock of listed companies, provide specific provisions on the manner of suspension, type, duration, procedures, disclosure of information, etc. And timely adapting and complying with the application, and doing a good job in self-discipline management services.
At the same time, the stock market should establish the time period of the suspension and the mechanism for elimination of the share capital index and the suspension disclosure system and regularly publish the frequency and duration of the suspension of shares on the market and invite the listed companies to take measures to reduce the suspension of shares.
Secondly, legal liability for violations of laws and regulations involved in the suspension of trading in shares in listed companies has been strictly investigated.
In the event of a violation of the rules of the stock exchange, arbitrary interruption of trading, delays in the continuation of trading or failure to comply with appropriate disclosure procedures and disclosure obligations, the stock market will adopt appropriate self-discipline management measures to suspect violations of laws, administrative regulations and CSRC regulations and Times has reported to the SFC.
The CSCE will strengthen supervision and enforcement of laws and regulations and launch illegal actions such as trading with an insider, such as arbitrary suspension, long-term suspension, lack of disclosure of information and the use of a suspension and the continuation of the control of the right. Strictly investigate the legal responsibility of an illegal and illegal subject in accordance with the law.
Four companies have been suspended for more than one year
Free trading stoppage and long-term suspension of trading has become an "old problem" for some companies in the A-stock market.
According to wind statistics, since November 6, a total of 66 companies on the list in two cities have been suspended. Among them, 20 of them were suspended for more than 100 days, which became a "nail house" for suspension. Four companies have been suspended for more than a year. * ST Xinii has been suspended for more than 3 years, and Shagang and Shenfang A have been suspended for more than 2 years.
The stocks have been suspended for more than 50 trading days in a row
Source: 6 November wind
The reasons for the long-term suspension of these companies are mainly related to mergers and acquisitions. Although there are reasons for the long-term elimination of listed companies, it is beyond doubt that not only causes locking of a large number of chips, but also reduces the efficiency of capital and resource flows and allocation, affects market liquidity and activity, distorts the market order and environment, and allows Investors to lose their basic trading rights and have to reduce investment opportunities.
The suspension mechanism has triggered a number of functions, such as issuing lock pricing for reorganization, avoiding specific market conditions, and enabling market value management. For example, during the abnormal fluctuation of A's actions in 2015, in order to avoid hijacking, there was a "big event" in which thousands of actions were suspended. If the stock market is still slow, many major stockholders of companies with a greater share of stockpiles face a risk of explosion, often due to risk rejection. Facing the suspension, too, as some of the companies listed on the list are "barbarians at the door", the listed companies often look for counter measures through a suspension.
It should be pointed out that the A internationalization is also progressing at a high speed. June 1, 2017. The shares were officially included in the MSCI index, and on September 27, 2018, FTSE Russell announced the inclusion of A shares in its global share index.
These two major indices have strict conditions for the liquidity of inventories. ChinPingChia, head of research MSCI Asia Pacific, said that if the company was found suspended for more than 50 days, it will be removed from the index and will not be reincorporated for at least 12 months. FTSE Executive Director Russell Mark Makepeace also said that the number of Chinese suspended shares remained "very high" compared to the international market, but it may be possible to exclude companies often suspended from the index.
In the first phase of entry A, MSCI should have included 230 constituent actions, but 222 were announced later. Since the MSCI discovered that some actions were suspended, they were removed. It was reported that in 2016 the MSCI decided not to add shares to China A stock index. One of the reasons is that the actions were arbitrarily suspended for a long time.
Shortly after AA entered the market, at a regular press conference on July 28, 2017, Chang Chang, a spokeswoman for the China Securities Regulatory Commission, said the CSRC would improve the system of suspension of company listing in the underlying system. The Stock Exchange issued separate suspension guidelines, and the CSRC issued relevant regulations. In general, the number of company suspensions on the list has been significantly reduced. In 2016, the suspension was reduced by 20% from 2015. Then, the CSRC will strengthen the control of companies on the list to stop trading and maintain the continuity and liquidity of market transactions.