Is the normalization of delisting a good thing or a bad thing for investors?

On August 19, the Shenzhen Stock Exchange decided to terminate the listing of the shares of Chuying Agriculture and Animal Husbandry. Chuying Agriculture and Animal Husbandry is also another listed company with a face value delisted after Zhonghong Shares.

Looking at the listed companies that have faced the risk of face value delisting in recent years, in fact, most of them are loss-making stocks and poor-performing stocks, and ST and *ST stocks are common targets. From the perspective of survival of the fittest in the market, retaining outstanding companies or continuing to support the development of growing companies will also be conducive to the effective use of capital market resources. As for long-term laggard companies, especially long-term poor-performing stocks, those that should be integrated should be actively integrated, and those that should be eliminated should be eliminated in a timely manner. This is also the key to realizing the continuous survival of the fittest function of the capital market.

Compared with previous years, in the past two years, the number of companies suspending listings in the A-share market has increased significantly, and the frequency of delisting has also increased significantly. Perhaps, the delisting situation in the A-share market still needs to be improved, but according to the increasingly strict delisting efforts in recent years, it actually means that the time for A-shares to normalize delisting is not far away.

For investors, if they are value investors and hold high-quality companies for a long time, the normalization of delisting in the stock market may have more benefits than disadvantages and revitalize investment in the stock market to a large extent. vitality and stimulate the long-term improvement of the stock market. But in contrast, if investors are keen on investing in low-priced stocks, or prefer to game the opportunity of the stock market turning from crow to phoenix, then the normalization of delisting may directly increase the risk of losses for investors.

In fact, in the context of the normalization of IPO issuance in the stock market, it is still necessary to normalize the delisting of the stock market. This is also the key to realizing the survival of the fittest function of the stock market. When realizing the normalization of stock market delisting, it is even more necessary to improve supporting measures, such as improving the civil compensation mechanism, introducing a class action system, and substantially improving the efficiency of investors' investment claims. This is also an important prerequisite for increasing the stock market delisting rate. .

Obviously, if the supporting measures are complete and sufficient, the impact of the normalization of stock market delisting on investors will be greatly weakened, and at the same time, the investment vitality of the stock market will be activated to a large extent. If supporting facilities are insufficient or investor education is insufficient, normalized delisting may still increase the probability of losses for some investors.

In addition, the setting of the delisting consolidation period still needs to be treated differently. Among them, for companies that have been delisted due to major violations of the law, or whose fundamentals are very poor and are no longer able to meet the conditions for re-listing, the company can be arranged to enter a delisting consolidation period to provide investors with more selling opportunities. Investors should not wait for the stocks to enter the delisting consolidation period before considering selling such companies, but should complete the selling action as soon as possible.

In contrast, for listed companies whose fundamentals are still stable and do not have the risk of forced delisting due to major violations, when the stock price reaches the face value delisting rules, it is not recommended to enter delisting order. Instead, it will be directly delisted and enter the third board market to reduce the risk of a sharp decline in stock prices caused by concentrated selling of funds during the delisting consolidation period. At the same time, for this type of listed companies, when delisting reaches face value, they can still adopt a proactive delisting strategy and repurchase shareholders' shares at a certain price, leaving a certain amount of choice for shareholders of listed companies. If the quality of the listed company is not bad, it can rely on its own efforts to meet the conditions for re-listing, which may be a kind of protection for investors. Solemn statement: The purpose of publishing this information is to spread more information and has nothing to do with the position of this site.