ST** is an abbreviation for "Special Handling**" and is usually used when a listed company is suspended from listing due to problems with its financial condition or operating conditions. These companies may be at risk of delisting, so some special measures need to be taken to help them regain profitability and avoid being delisted. Unlike ST**, ST** is set up specifically for companies that have been suspended from listing.
Here are the main differences between ST and ST:
1.The definitions are different: ST** refers to a company whose listing has been suspended; *st** refers to companies that have been suspended from listing. In other words, if a company is identified as ST**, then it still has hope to regain its listing qualification through restructuring, improving performance, etc.; Once it is identified as *ST**, it means that the company will never be able to be listed and traded again.
2.The nature of the company is different: ST** companies are usually those companies that have problems in finance, accounting, etc., such as continuous losses, major violations, etc. The nature of *ST companies is more serious, they not only have the above problems, but also may also involve other problems, such as non-standard corporate governance, untimely information disclosure, etc.
3.The reasons for the suspension are different: the suspension of ST**'s listing is due to the company's financial problems or poor operations in the most recent financial year, which caused it to fail to meet the listing conditions stipulated by the exchange. *ST**, on the other hand, was forcibly suspended from listing because the company had serious violations of laws and regulations, or the company had suffered losses for more than three consecutive years and could not be effectively reversed, resulting in its inability to meet the listing requirements.
4.The listing rules are different: for ST**, if the company can successfully solve its financial problems or improve its operating conditions, and meets the relevant regulations of the exchange, it can apply for the cancellation of ST** and thus return to normal listing. However, *ST** does not have this opportunity, because once it becomes *ST**, it means that the company has permanently lost the opportunity to go public.
5.Investors pay different attention: Since ST** is at risk of delisting, investors need to be more cautious when buying ST** and need to conduct in-depth research and analysis of the company's fundamentals. Conversely, investors in ST usually don't value the company's fundamentals as much as they do in ST because they know that even if they don't, they won't make money. However, they are also more willing to take greater risks in order to obtain higher returns.
In conclusion, the main difference between ST** and *ST** is the nature of the company and whether the listing is suspended or not. Although both are publicly traded companies, their risks and investment values vary greatly. Investors should choose an investment strategy that suits them based on their own experience and risk tolerance.