Core Viewpoint - The A-share market is accelerating the elimination of underperforming companies, with over 140 listed companies facing delisting risk warnings this year, leading to significant stock price declines for many of these companies and the funds that invested in them [1][3]. Group 1: Market Dynamics - More than 140 listed companies have been subjected to delisting risk warnings, with 27 and 43 companies receiving such warnings on April 30 and May 6, respectively [3]. - The stock prices of most companies that received delisting risk warnings experienced sharp declines following the announcements [3]. - The "shell value" of listed companies has significantly decreased due to the strict enforcement of delisting regulations [8]. Group 2: Fund Holdings and Reactions - The interest of public funds in ST stocks has significantly decreased compared to the past, although some companies still attract public fund interest when they have the potential to remove the delisting risk [2][8]. - Among the 140 companies facing delisting risks, only 19 have public fund holdings, primarily in passive funds like ETFs [5]. - Specific companies like *ST Tianze and *ST Songfa have seen significant public fund holdings, with the former having a fund holding ratio of approximately 5.57% and the latter at 7.09% as of the end of Q1 this year [4]. Group 3: Investment Strategies - The process of selecting stocks for public funds involves multiple layers of screening, with a focus on fundamental quality and liquidity [5][6]. - Fund managers must submit research reports and obtain approval from the investment decision committee before including stocks in the core portfolio [6][8]. - The handling of ST stocks by index funds varies, with some funds choosing to remove them from their portfolios while others may retain them temporarily [7]. Group 4: Potential Opportunities - Despite the decline in interest in ST stocks, some companies like ST Huayuan and *ST Chengchang have shown potential for recovery, attracting interest from various public funds [8]. - The investment decision-making process for these stocks remains complex, requiring thorough research and committee approval, especially under the current regulatory environment [8].

Core Viewpoint - The A-share market is accelerating the elimination of underperforming companies, with over 140 listed companies facing delisting risk warnings this year, leading to significant stock price declines for many of these companies [1][2][4]. Group 1: Market Dynamics - More than 140 listed companies have been implemented with ST (Special Treatment) status due to new regulations, with 43 and 27 companies receiving this status on April 30 and May 6, respectively [2]. - Companies under delisting risk warnings generally experience sharp declines in stock prices, impacting funds that have invested in these stocks [2][4]. - The "shell value" of listed companies has significantly decreased due to strict enforcement of delisting regulations [7]. Group 2: Fund Involvement - Despite the decline in interest from public funds in ST stocks, some companies that may potentially remove their ST status are still attracting attention from public funds [1][7]. - Among the 140+ companies facing delisting risk, only 19 have fund holdings, primarily from passive funds like ETFs [4]. - Public funds have a low "踩雷" (踩雷 means to hit a mine, referring to investment losses) ratio, with most holdings being in theme ETFs rather than actively managed funds [4]. Group 3: Specific Company Cases - *ST天择, an AI media concept stock, saw its stock price drop significantly after being placed under ST status, despite previously attracting substantial public fund investment [3][2]. - 松发股份 also faced ST status due to negative financial performance, with public funds holding a high concentration in this stock [3]. - ST华通, which faced ST status due to financial fraud, has seen a recovery in stock price, with 22 equity products investing in it as of the end of Q1 this year [7]. Group 4: Investment Strategies - The process for a stock to enter a core stock pool involves multiple layers of scrutiny, with fundamental performance being the primary criterion [5]. - Fund managers must undergo a complex approval process to invest in high-risk ST stocks, reflecting a cautious approach in the current regulatory environment [8]. - Some index funds may choose to retain ST stocks in their portfolios, while others may opt to remove them based on their investment strategies [6].