Core Viewpoint - The implementation of new delisting regulations in the A-share market has led to an increase in the number of companies facing delisting, indicating a shift towards a more normalized delisting mechanism that enhances market efficiency and resource allocation [1][5][6]. Delisting Events - *ST New Yi became the first company to face mandatory delisting due to major violations, with its stock set to enter a delisting period on March 30, 2022, after two consecutive years of financial fraud [3]. - *ST Aige has been trading below 1 yuan for 16 consecutive days, making it likely to become the first company to be delisted under the "1 yuan delisting" rule if it continues this trend [2]. - *ST Changdong has also triggered financial delisting indicators, with its 2021 annual report showing negative net assets and net profits, leading to a suspension of its stock [2]. Market Response and Trends - The number of delisted companies has increased significantly since the new regulations were implemented, with 10, 16, and 20 companies delisted in 2019, 2020, and 2021 respectively, reflecting a year-on-year growth of 100%, 60%, and 25% [3]. - Experts believe that the new delisting rules have effectively deterred fraudulent activities and reinforced the seriousness of legal regulations in the market [5][6]. Future Implications - The gradual formation of a normalized delisting mechanism is expected to accelerate the turnover of companies in the A-share market, enhancing the overall market environment and ensuring that only qualified companies remain listed [5][6]. - The upcoming full implementation of the registration system is anticipated to further improve market inclusivity, necessitating stricter delisting standards [6].

Core Viewpoint - The number of companies at risk of delisting due to financial indicators is expected to increase as 2023 performance forecasts are disclosed, with a significant number of companies already under risk warning [1][2]. Group 1: Performance Forecasts and Risk Warnings - As of January 29, 2023, 20 companies have disclosed performance forecasts, with 11 continuing to incur losses, 7 turning losses into profits, 1 expecting profit growth, and 1 expecting profit reduction [1]. - Among the 7 *ST stocks, 4 have turned losses into profits, 2 continue to incur losses, and 1 expects profit reduction [1]. - Companies like *ST Dou Shen and *ST Mo Gao may face mandatory delisting due to continuous losses over two years and expected losses in 2023 [1]. Group 2: Potential Delisting and Regulatory Actions - Nine ST stocks, including ST Zhong Zhu and ST Xing Yuan, may face risk warnings due to continued losses, with ST Shen Tian predicting a net asset of -9.956 million to -49.956 million yuan [2]. - Non-ST companies with expected losses and revenue below 100 million yuan may also face delisting warnings, as seen with Wei Di Co. and Han Ma Technology [2]. - The China Securities Regulatory Commission emphasizes the need for a robust delisting mechanism, advocating for a "delist as needed" approach to enhance market efficiency [2]. Group 3: Recommendations for Improvement - Experts suggest that the delisting mechanism requires further refinement, including better investor education and support for quality companies with long-term value [3]. - There is a call for more proactive delisting measures and improved restructuring processes, alongside enhanced investor protection mechanisms [3].

Core Viewpoint - The pace of delisting in A-shares has significantly accelerated in the past month, reflecting a more stringent market mechanism for eliminating underperforming companies and enhancing overall quality [1][6]. Group 1: Delisting Statistics - As of August 4, 2023, a total of 23 A-share companies have been delisted this year, with 10 of those occurring in the last month, accounting for over 40% of the total [1][2]. - The reasons for delisting include major violations and financial issues, with a notable decrease in the number of companies delisted for face value reasons compared to the previous year [4][5]. Group 2: Reasons for Delisting - Companies such as退市锦港 (Jin Gang) were delisted due to major violations related to financial fraud, including inflated profits through false trade activities [2][3]. - Other companies like中程退 (Zhong Cheng) and退市九有 (Jiu You) were delisted for failing to meet financial standards, with negative net assets and adverse audit opinions on their financial reports [2][3]. Group 3: Regulatory Changes - New regulations implemented in April 2023 have made it more difficult for companies to reverse delisting warnings, leading to a more rigorous enforcement of delisting standards [5][6]. - The trend towards a normalized delisting mechanism aligns with the "14th Five-Year Plan" for capital market development, emphasizing timely removal of underperforming companies [6]. Group 4: Future Outlook - Experts suggest that the delisting system needs continuous optimization, including clearer processes and enhanced regulatory oversight to protect investors and ensure compliance [6][7].

Core Viewpoint - Notai Bio has been suspended from trading due to financial fraud, with its stock being relisted under the risk warning designation "ST Notai" starting July 22, following a one-day suspension on July 21 [1][2]. Company Summary - Notai Bio received an administrative penalty notice from the China Securities Regulatory Commission (CSRC) for false reporting in its 2021 annual report, which inflated revenue by 30 million yuan and net profit by 25.9516 million yuan [1]. - The company faces a fine of 47.4 million yuan and its actual controller, Zhao Dezhong, is fined 13 million yuan, with other responsible parties also facing penalties [1]. - The board of directors is taking the risk warning seriously and plans to implement measures to mitigate the impact of these issues [2]. Shareholding Situation - Major public fund managers, including China Merchants Fund, hold significant shares in Notai Bio, with a total holding value exceeding 340 million yuan as of mid-2023 [4]. - China Merchants Fund alone holds 773.05 million shares, representing 2.46% of Notai Bio's circulating A-shares [3][4]. - Specific funds managed by China Merchants have seen varying degrees of increase in their holdings, indicating potential exposure to losses if the situation worsens [4]. Industry Context - The implementation of new regulations and stricter oversight is accelerating the delisting process for companies, raising the stakes for public funds in managing risks associated with ST stocks [5]. - Public funds are urged to enhance their stock selection capabilities to navigate market changes effectively, especially in light of the increased likelihood of delistings [5].

Group 1 - The normalization of the delisting mechanism is crucial for the healthy operation of the capital market [1] - The article aims to enhance investors' understanding of delisted companies during the financial publicity month in 2024 [1] - The series "Delisting Knowledge Handbook" will cover topics such as arrangements for delisted companies, stock transfer rules, and management of convertible bonds after delisting [1] Group 2 - This issue introduces the basic knowledge of delisted convertible bonds and investor suitability [1]

Group 1 - The article emphasizes that a normalized delisting mechanism is crucial for the healthy operation of the capital market [2] - It aims to enhance investors' understanding of delisted companies through a series of educational materials during the 2024 Financial Promotion Month [2] - The current issue introduces the meaning of delisted sectors and the arrangements for companies after delisting [2]

Core Viewpoint - The article emphasizes the importance of a normalized delisting mechanism for the healthy operation of the capital market, aiming to enhance investors' understanding of delisted companies and related regulations [1]. Group 1: Delisting Mechanism - A normalized delisting mechanism is crucial for ensuring the effective functioning of the capital market [1]. - The article introduces a series of educational content during the 2024 Financial Promotion Month, focusing on delisted companies and their stock transfer rules [1]. Group 2: Information Disclosure - The current issue discusses the continuous information disclosure requirements for convertible bonds after a company is delisted [1].