China Justice Observer

中司观察

EnglishArabicChinese (Simplified)DutchFrenchGermanHindiItalianJapaneseKoreanPortugueseRussianSpanishSwedishHebrewIndonesianVietnameseThaiTurkishMalay

China to Strengthen Supervision of Delisting Companies

Mon, 13 Jun 2022
Categories: China Legal Trends

On 29 Apr. 2022, China Securities Regulatory Commission (CSRC) issued the “Guiding Opinions on Improving the Supervision of Listed Companies after Delisting” (《关于完善上市公司退市后监管工作的指导意见》, hereinafter referred to as the “Opinions”), which took effect from the date of issuance.

The number of delisting companies has surged since China reformed its registration-based stock issuance system. By the end of 2021, the number of companies on the delisting board had grown from 45 in 2013 to 83, resulting in huge pressure on the supervision of CSRC.

The Opinions is applicable to companies delisting from all boards of the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE), and companies directly transferred to the delisting board from the Beijing Stock Exchange (BSE). The delisting companies that were originally traded in the STAQ and NET Systems shall also be subject to routine supervision in accordance with relevant provisions.

The Opinions aim to improve the delisting mechanism and regulation.

It stipulates that after delisting companies go through relevant listing procedures with the help of sponsoring brokers, the stocks of the company shall directly enter the delisting board for transfer according to the regulations of the National Equities Exchange and Quotations (NEEQ), so as to protect investors’ trading rights.

The Opinions also regulates the information disclosure during the delisting period. It requires delisting companies to promptly disclose their progress of listing and other significant matters on the website of NEEQ when their stocks are delisted from Exchanges and enter the delisting board.

 

 

Cover Photo by Kale Design on Unsplash

Contributors: CJO Staff Contributors Team

Save as PDF

You might also like

SPC Publishes Typical Cases on Public Security Crimes

In April 2024, China's Supreme People's Court (SPC) released five typical cases illustrating crimes against public security, emphasizing clarifications on trial criteria and sentencing principles, featuring a case involving serious injuries from objects thrown off a high-rise building.

Beijing Court Upholds Workers' Right to Offline Rest

The Beijing No. 3 Intermediate People's Court ruled that workers are entitled to overtime pay for “invisible overtime work” conducted via social media outside of working hours, protecting their right to “offline rest”.

China Revises State Secrets Protection Law

China’s national legislature, the National People’s Congress, revised the State Secrets Protection Law to enhance information classification, secrecy in technological innovation, and precise protection of state secrets, effective May 1, 2024.