For 20 consecutive trading days, the ** price fell below 1 yuan, and *ST Huayi (600290) waited for the final decision of the exchange.
On the evening of January 9, *ST Huayi announced that the company received the "Decision on the Termination of the Listing of Huayi Electric Shares" from the Shanghai Stock Exchange, and the Shanghai Stock Exchange decided to terminate the company's listing. The company** will not enter the delisting period and will terminate its listing and delisting on January 16, 2024. As a result, *ST Huayi became the first A-share stock to be delisted in 2024.
It does not enter the delisting period for trading.
Specifically, *ST Huayi** has reached the trading delisting indicator because the ** price of *ST Huayi** has been lower than 1 yuan for 20 consecutive trading days (November 28, 2023 to December 25, 2023). It is worth noting that trading companies that are compulsorily delisted** do not enter the delisting period for trading.
According to the announcement, *ST Huayi will terminate the listing and delisting on January 16, and after the company's first termination of listing, it will enter the National Small and Medium-sized Enterprises Share Transfer System Co., Ltd. relying on the original ** company's share transfer system to establish and manage the two network companies and delisted companies listed for transfer.
In addition, *ST Huayi shall arrange for the transfer of the relevant matters of the National Equities Exchange and Quotations System immediately after the termination of the listing, so as to ensure that the company can be listed for transfer within 45 trading days from the date of delisting.
The company will complete the hiring of the host brokerage as soon as possible. *ST Huayi announced that the company or the lead brokerage firm will entrust ChinaClear Shanghai Branch to provide preliminary conversion services for individual and ordinary institutional investors who hold the company's ** account. During the period from the termination of the company's listing and delisting to the completion of the initial registration business of the delisting sector by the sponsoring brokerage, investors should not cancel the ** account obtained from the initial conversion, so as to avoid affecting the registration and transfer of shares.
He was once placed on file on suspicion of violating the letter disclosure rules.
Looking back on the past, since 2019, *ST Huayi has been plagued by problems such as illegal guarantees and capital occupation by controlling shareholders, freezing of the company's bank accounts, and asset seizure and freezing.
On June 21, 2023, *ST Huayi announced that the company received the "Notice of Case Filing" issued by the China Securities Regulatory Commission on the same day, and the China Securities Regulatory Commission decided to file a case against the company due to the company's suspected illegal information disclosure. After half a year, *ST Huayi announced on the evening of December 21 that due to the company's major matters still need to be verified, the company's ** began to suspend trading on December 22, and the suspension is expected to last no more than 3 trading days.
ST Huayi has also committed financial fraud for six consecutive years. According to the "Advance Notice of Administrative Punishment" issued by the Zhejiang Supervision Bureau of the China Securities Regulatory Commission, *ST Huayi has false records in its annual reports from 2017 to 2022, and may be forced to delist due to major violations.
In addition, according to *ST Huayi, as of December 22, 2023, *ST Huayi has a balance of 19 funds occupied by Huayi Group (the original controlling shareholder of *ST Huayi) and its affiliates3.4 billion yuan, and the balance of illegal guarantees is 1$8.1 billion. Since Huayi Group is currently in the stage of bankruptcy liquidation and has completed the distribution of assets in accordance with the Implementation Plan of the Bankruptcy Distribution Plan, there are risks that it is difficult to resolve a series of problems such as capital occupation and illegal guarantees for *ST Huayi.
The normalized delisting mechanism has gradually taken shape.
Since the second half of last year, *ST Huayi's share price has continued to be around 1 yuan**. Since late November last year, with the exposure of related risk matters, the company's stock price has fallen one after another, until it has hit the trading delisting situation. As of December 25**, ST Huayi has been below 1 yuan for 20 consecutive trading days.
It is worth noting that at present, *ST Bolong (002776) and *ST Oceanwide (000046) have touched the delisting condition of "stock price less than 1 yuan for 20 consecutive days", and have received prior notice of termination of listing from the exchange, and the former "first stock of Shenzhen jewelry" *ST Aidi (002740) has also locked in "1 yuan delisting" in advance.
With the implementation of the comprehensive registration system, the corresponding normalized delisting mechanism has gradually taken shape, and an orderly capital market ecology is accelerating. Kaiyuan** said that in 2023, the number of trading delistings and major illegal delistings will increase significantly, which means that the new delisting regulations have gradually smoothed the diversified delisting channels for A-shares.
Guoyuan** believes that the delisting system is a key basic system of the capital market, and as an important part of the deepening of the comprehensive registration system, normalized delisting can better realize the survival of the fittest in the market and optimize the allocation of resources. By eliminating non-performing enterprises, market resources will be more concentrated on high-quality enterprises with competitiveness and growth potential, thereby promoting the healthy development of the overall market.
Editor-in-charge: Zhang Qianyao.
Proofreading: Wang Wei.