On November 8, 2018, in accordance with the provisions of the “Stock Listing Rules” and the review opinions of the Listing Committee, the Shenzhen Stock Exchange made the decision to terminate the listing of Zhonghong Shares. Zhonghong Co., Ltd. became the first company to be forced to terminate its listing because its share price was continuously below par. The Shenzhen Stock Exchange resolutely implements the responsibility of delisting the main body and makes the decision to terminate the listing according to the law. It is the respect and protection of the market autonomy and the market-oriented choice of investors. It is to further improve the basic functions of the capital market, enhance the effectiveness of the capital market, and strengthen rationality. The embodiment of the value investment concept.
Respect the market-oriented selection results
Since 2018, Zhonghong has successively disclosed major risks such as large losses in performance, overdue debts, and major project shutdowns. Investors have expressed their judgment on the value of the company's investment through market-oriented behavior. On August 15, 2018, the closing price of the company's stock was lower than the face value (1 yuan) for the first time. From September 13, 2018 to October 18, 2018, the daily closing price of the company's stock for 20 consecutive trading days is lower than the face value of the stock (1 yuan), which is subject to the termination of the provisions of Article 14.4.1 of the Stock Listing Rules. Listing situation. According to the provisions of Article 14.4.11 of the Stock Listing Rules, the company's shares will be suspended from October 19.
Before the Shenzhen Stock Exchange made the decision to terminate the listing of the company's stock, the Shenzhen Stock Exchange shall perform the hearing procedure in accordance with the law and fully protect the right of defense of the listed company. On October 23, the Shenzhen Stock Exchange issued a "Advance Notice" to Zhonghong shares to inform them of the right to apply for a hearing. On the same day, the company filed a hearing application. On November 6, the listing committee of the Shenzhen Stock Exchange held a hearing to terminate the listing of Zhonghong Shares, fully listened to the company's on-site statements and defense opinions, obtained more comprehensive audit information, and clearly disclosed to the parties the facts and rules and terms on which the decision to terminate the listing was based. Ensure that the delisting review process is legal and compliant, and the market participants' right to participate and the right to know are effectively guaranteed. On the same day, the Listing Committee held a working meeting to review the termination of listing of Zhonghong. According to the opinions of the Listing Committee, the standards are objective, the facts are clear, and the basis is clear. The Shenzhen Stock Exchange has decided to terminate the listing of Zhonghong shares.
Performing duties according to law, fully demonstrating risks
Since the outbreak of risks related to Zhonghong shares, the Shenzhen Stock Exchange has fulfilled its first-line supervision duties according to law, strictly disclosed information, fully revealed risks, and earnestly safeguarded the legitimate rights and interests of small and medium-sized investors.
The first is to strengthen the supervision of information disclosure. In recent years, Zhonghong has repeatedly carried out high-transfer and asset-liability ratios. The Shenzhen Stock Exchange has always listed it as a key supervision of high-risk companies. It has repeatedly sent letters to urge the company to supplement and correct relevant announcements to ensure that information disclosure is true and accurate. Fully guarantee the right of small and medium investors to know. On the evening of August 27, 2018, the company applied for disclosure of the “Debt Restructuring and Operational Trusteeship Agreement” signed with Jiaduobao Group Co., Ltd., and the Shenzhen Stock Exchange was concerned that the agreement was not reviewed by the board of directors and was not substantively binding. Fulfilling problems such as major uncertainties. In the case of confirming that the relevant disclosure documents are available, the Shenzhen Stock Exchange requires the company to disclose the full text of the agreement and highlight the aforementioned risks in a prominent position in the announcement to effectively protect the legitimate rights and interests of investors. In the morning of August 28, after Jiaduobao issued a disclaimer, the Shenzhen Stock Exchange temporarily suspended the company's stock and immediately sent a letter to order the company to verify the clarification and resumption of trading, to maintain fairness and integrity of information disclosure, and to ensure investors. Make investment decisions based on adequate disclosure of information.
The second is to continuously reveal the risk of termination of listing. Since the closing price of Zhonghong shares on August 28, 2018 has reached the face value of the stock for the first time in 10 consecutive trading days, the Shenzhen Stock Exchange has continued to urge the company to indicate that the stock may be terminated. In addition, on August 14, 2018, the company was investigated by the Securities and Futures Commission for the disclosure of the first quarter report, semi-annual report and third quarter report of 2017. The Shenzhen Stock Exchange required the company to report the major illegal delisting risks that may arise from the above matters. Make full disclosure.
The third is to make disciplinary sanctions according to the law. In the review of Zhonghong's 2017 annual report, the company found that the company had illegally paid 6.15 billion yuan in purchases, failed to disclose major administrative penalties in a timely manner, failed to repay the replenishment funds, and delayed the disclosure of performance notices. The Shenzhen Stock Exchange timely checked Explain the facts, initiate disciplinary procedures, and publicly condemn the company and related responsible persons on September 4.
The risk of terminating a listed company is high.
According to the provisions of Rule 14.42.23 of the Stock Listing Rules, the company's stock will enter the delisting period from November 16, 2018. The trading period will be 30 trading days, and the stock short name will be changed to “Zhonghong Back”. The daily price of the stock price is limited to 10%. On the next trading day after the delisting period expires, the Shenzhen Stock Exchange will delist the company's stock.
The delisting period is the last trading opportunity provided by the delisting company investors before the company's stock delisting. The purpose is to release the risk. Investors should carefully read the relevant announcements issued by the company and the special regulations of the Shenzhen Stock Exchange delisting period. ", highly concerned about the investment risks of the companies to be delisted.
After the delisting, the company can still be listed for transfer.
According to the relevant rules, the company's stock will enter the national SME share transfer system (hereinafter referred to as the “share transfer system”) for listing and transfer within forty-five trading days after the expiration of the delisting period. The Shenzhen Stock Exchange will urge the company to fully disclose the arrangements for investors to handle share confirmation, registration and custody after the stock is terminated, the company's contact information and ways to understand the company's information to protect the rights and interests of investors.
According to the relevant provisions of the Interim Measures for the Transfer of Stocks between the Two-Net Company and the Delisting Company of the National Small and Medium-Sized Enterprises (SMEs), the shareholders of the company must re-perform the procedures for the confirmation, registration and custody of the shares before they can be transferred. Details on how investors can re-execute the above procedures and how to transfer the shares of the delisted company through the share transfer system can be found on the website of the stock transfer system (website: www.neeq.com.cn).
After the stock is terminated, Zhonghong shares still belong to the joint stock limited company. The company shall abide by the provisions of the "Company Law", continue to fulfill the relevant obligations of the public company and assume social responsibilities, and ensure that the rights of the company shareholders are not due to the company's stock. The listing status has changed and has changed.
In the next step, the Shenzhen Stock Exchange will strictly implement the first-line supervision duties in accordance with the unified deployment of the China Securities Regulatory Commission, adhere to the marketization, normalization, and legalization of the delisting system, and effectively improve the quality of listed companies through the survival of the fittest and the orderly marketization; Enhance the economic ability of service entities, and jointly support relevant departments to support listed companies in mitigating difficulties in development, assist listed companies to use capital markets to become better and stronger; guide market entities to blame and effectively protect small and medium-sized investors' right to know and trade, and enhance Market vitality and confidence.
Analysis and interpretation >>
(Article source: Shenzhen Stock Exchange website)
(Original title: Shenzhen Stock Exchange made the decision to terminate the listing of Zhonghong shares in accordance with the law)