China’s securities regulator on Friday released a guideline on strict implementation of delisting regulation.
The guideline, released by the China Securities Regulatory Commission, focuses on improving the overall quality of listed companies, clearing out “zombie shell” companies and “black sheep” stocks, and reducing the value of “shell” resources through stricter delisting regulation, expanding diverse exit channels and strengthening investor protection.
Specifically, the guideline demands adopting stricter standards for compulsory delisting, forcing companies found guilty of serious falsification within a year or engaging in continuous falsification to delist. It also calls for a resolute crackdown on vicious and long-term systemic financial frauds.
It requires improving policies and regulations in areas such as mergers and acquisitions, encouraging and guiding leading companies to integrate industrial chains based on their main businesses.
The guideline also urged efforts to intensify delisting supervision, severely punish illegal activities such as financial fraud, insider trading and market manipulation, and optimize investor compensation remedy mechanisms.—Xinhua
