Tuesday March 13 2018

News Source: Global Exchanges

Focus: Listing Rules

Type: General




On 13th March 2018, Shenzhen Stock Exchange (SZE) published information on how it would implement the China Securities Regulatory Commission’s (“CSRC”) forced delisting measures.

SZE cites the following scenarios as being subject to forced delisting:

  • A company forges a false record, misleading statement or omission of important information found in a listed company’s IPO application files or disclosed papers, and fraud IPO identified by penalty administration of CSRC or found guilty by the people’s court in pursuant to the Article 160 of the Criminal Law.
  • A company forges a false record, misleading statement or omission of important information found in asset purchase via share offering.
  • A company forges a false record, misleading statement or omission of important information found in a listed company’s disclosed annual report, and the audited financial indicators of the listed company in consecutive accounting years has touched upon the standard of termination of delisting that provided in the Rules on Listing of Company in according to the facts of identified by the penalty administration of CSRC.
  • There are false records, misleading statements or major omissions in the application or disclosure documents provided by the listed company, who has been found guilty by the People’s Court pursuant to Article 161 of the Criminal Law.
  • The listed company has received three or more administrative penalties pursuant to Article 193 of the Securities Law by the CSRC within the last 60 months.
  • Other scenarios that are determined by the SZSE as illegal activities based on facts, nature, circumstances, and societal impact.

The Strict Enforcement of Forced Delisting means the following:

  • The period of suspension for listing is shortened from 12 to 6 months in the case of major law violations.
  • Having been suspended from listing, any rectification, compensation, and other options for relisting are ruled out.
  • After six months, the company shall be directly terminated from listing.
  • Stricter re-listing terms are in place for delisted companies.
  • Companies that have been delisted due to fraud shall cannot apply for re-listing.

For additional information click the link above.