With the continuous strengthening of the regulatory environment, the capital market is gradually moving away from the stage of "savage growth" in the past and entering a new era of more maturity and standardization. In 2023, the implementation of mandatory delisting for major violations has become a landmark turning point, which is not only a change in rules, but also a manifestation of the strengthening of market order and the protection of investors' rights and interests.
Against this backdrop, we have witnessed a series of cases of delisting due to serious violations, which not only sounded the alarm bell for the market, but also taught a vivid lesson to all market participants: the bottom line of the law cannot be touched, and the discipline of the market must be strictly followed.
As the prelude to 2024 slowly kicks off, the capital market has staged a shocking delisting drama. In this feast of strict supervision, some listed companies have been ruthlessly exposed for years of financial fraud, just like gamblers who are finally abandoned by the roulette wheel of fate. ST Botian and ST Xinhai, two listed companies that have enjoyed unlimited glory in the capital market, ushered in their "good start" at the beginning of the year - a delisting notice, marking that their fate bell has sounded.
*ST Poten, as the first case to be forcibly delisted in 2024 due to major violations, has a five-year-long history of financial fraud. Under the penalty of a fine of 13 million yuan from the Beijing Securities Regulatory Bureau, the company's stock price collapsed, thus opening the prelude to the "survival of the fittest" in the capital market.
At the same time, ST Xinhai was also issued a delisting warning by the Shenzhen Stock Exchange for inflating revenue and profits from 2014 to 2019. Although ST Huayi did not have obvious major violations, the false records in its financial statements for many years finally pushed it into the abyss of forced delisting。The fall of these companies is like a resounding slap in the face to those who try to cheat in the capital market.
However, the delisting of these companies is not an isolated event. Since the reform of the delisting system, the market mechanism of "entering and leaving" has gradually taken shape, and the tide of delisting has become more and more turbulent. According to incomplete statistics, since the beginning of the year alone, seven companies, including *ST Xinhai and *ST Potian, have been locked in and delisted or have completed delisting.
Among them, *ST Poten revealed serious financial fraud in a nightly announcement on February 2. After suffering the fate of forced delisting, the company** has been suspended since February 5. After a series of falling limits, the stock price of *ST Botian was short-lived**, but it was just behind the flowers, hiding the shadow of falling. This kind of drastic stock price ** is undoubtedly a great test of investor confidence, and it is also a visual demonstration of the severity of capital market supervision.
The cases of these delisted companies are not only a warning to their individuals, but also a profound enlightenment to the entire capital market. While marveling at the methods used by these companies to manipulate the market and misrepresent themselves, investors can't help but start to take a fresh look at other players in the market. In this new era of "survival of the fittest", which companies will be able to withstand the test, and which ones will be eliminated in this ruthless market elimination competition? This wave of delisting is not only a punishment for those dishonest companies, but also a baptism for the entire capital market.
The capital market, a dynamic and exceptionally rigorous ecosystem, has significantly enhanced its self-purification function since the reform of the delisting system in 2020. In 2023, this upgraded version of the market mechanism has been tested like never before: a total of 8 companies have been pushed into the abyss of delisting due to major violations, which is more than double the number of 3 companies before the reform.
This is not only a big wave of the capital market, but also a powerful blow to those lawbreakers who are trying to walk the rivers and lakes in the capital market.
ST Potian, the company's financial fraud spanned a full 5 years, and its carefully woven lies were finally ruthlessly exposed in 2024, becoming the "first stock" to be delisted in the new year. The experience marks the beginning of a new era of strict regulation of capital markets, and it is unveiled in a powerful way. It seems that every delisting is a statement to market participants that the capital market is not a place outside the law, and the boundaries of rules cannot be stepped on.
ST Xinhai, this company is involved in more than just general financial misconduct, but has accumulated inflated operating income of up to 37 percent over a six-year period4.1 billion yuan, and the total inflated profit reached 56.7 billion yuan. Such a figure is undoubtedly a heavy blow to any investor. The foundation of trust in the capital market has been severely damaged, and the price paid by ST Xinhai is to be expelled from this market forever. False records are undoubtedly the enemy of the capital market, because it undermines the transparency of information in the market and damages the basis of investors' judgment.
However, ST Shinkai is not alone. The same fate befell ST Huayi, a former wind power giant that first hit the threshold of mandatory delisting for trading after its share price was below par for 20 consecutive trading days, and then was officially delisted for false records. This series of events is undoubtedly a huge question about the company's management and its financial transparency. The ** of the stock price is almost like a barometer of investor confidence, and this continuous decline undoubtedly indicates a storm of trust.
The former 100 billion real estate giant *ST Oceanwide has not been spared, and its direct delisting fuse is the continuous stock price drop and the violent evaporation of market value. But the deeper reason lies in the company's fundamentals. Oceanwide Holdings' major shareholder shareholding increase plan has failed, which is not only a huge failure to market expectations, but also a heavy blow to investor confidence. When investors find that even the "bigwigs" within the company are not hopeful about the stock price, how much confidence can they have left?
The process of self-purification of the capital market, although brutal, is also necessary. The practice of forced delisting in violation of major laws has undoubtedly paved the way for the healthy development of China's capital market. This series of delisting cases not only reflects the determination and strength of the regulatory authorities, but also reflects the gradual maturity of the market.
For investors, this is a new learning and adaptation process, as well as an opportunity to re-examine and select investment targets. In the long run, this will help build a more transparent, fair and efficient capital market environment, and provide a stable and reliable investment stage for all participants. As these cases show, the future capital market will be a more rule-oriented and quality-oriented market, and survival of the fittest will become the norm, which will play a positive role in promoting the sustainable development of the economy.