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In the just-ended July, 14 A-share listed companies announced their delisting.

Following the release of the new "Nine National Regulations", the China Securities Regulatory Commission has continuously strengthened supervision of the quality of listed companies, further clarified delisting standards and procedures, and promoted the normalization and marketization of the delisting system. The deepening of the delisting system reform aims to eliminate companies that lack market competitiveness and investment value and improve the quality and efficiency of the entire market.

As a result, the survival of the fittest in the A-share market has accelerated, and warnings of delisting based on face value and market value have been continuously sounded. The delisting wave in July is also a reflection of the effectiveness of the reform of the delisting system.

14 A-share listed companies delisted in July

According to data from 10Jun, 14 stocks were delisted in July this year, of which 7 were delisted due to par value, 6 were delisted due to other circumstances that did not meet listing requirements, and 1 was delisted for failure to disclose periodic reports after suspension of listing.

Specifically, the seven stocks that were delisted at par value are Kaima B, *ST Baoli, *ST Gaosheng, ST Yili, *ST Yilian, ST Zhongnan, and ST Yangguang, all of which were delisted because their closing prices were lower than 1 yuan for 20 consecutive trading days; six stocks were sentenced to financial delisting, namely Zuojiang Delisting, Sansheng Delisting, Tai'an Delisting, Delisted Carbon Yuan, Delisted Yuancheng, and Delisted Tongda; the stock that was delisted for failure to disclose periodic reports after suspension of listing was Yuebo Delisting.

In terms of industry, none of the stocks delisted in July this year belonged to an industry with a large proportion, which is somewhat different from the delisting in the same period last year.

Compared with the same period last year, there were 21 delisted stocks in July 2023, 7 more than this year, and it was also the month with the most delistings in 2023. The industries of delisted companies in July last year were concentrated in the real estate and computer industries, accounting for 19% and 24% respectively.

It is worth noting that according to Wind data, a total of 30 stocks have been delisted since 2024, with the largest number of delistings in June and July accounting for 70%.

Multiple non-ST companies trigger delisting conditions

In addition to the companies that have been delisted, there are also some companies that have basically locked in par value delisting, but have not yet announced it. According to my country's par value delisting rules, the par value of a stock is usually 1 yuan per share. If the daily closing price of a company's stock is lower than its par value for 20 consecutive trading days, it will trigger the par value delisting conditions and be forced to delist by the exchange.

According to data from Tonghuashun, 19 companies including ST Futong, Haiyin Holdings, BOC Wool Industry, *ST Hongtao, China Guanghui Automobile, and ST Xinlun are currently facing par value withdrawal.

Among them, there are 15 ST stocks, namely ST Futong, *ST Huatie, ST Lianluo, *ST Chaohua, *ST Hongtao, ST Xinlun, ST Changkang, ST Dinglong, ST Aikon, *ST Meiji, ST Hanggao, *ST Baan, *ST Meishang, *ST Tiancheng, and ST Dima.

In addition, there are also more and more non-ST company stocks priced below 1 yuan.

Since June 25, 2024, the share price of Haiyin shares has been below 1 yuan. As of July 17, the closing price of the company's shares was 0.86 yuan per share, which has been below 1 yuan for 17 consecutive trading days. Just when the company was facing the danger of delisting, it announced that it was planning to issue shares to purchase assets, and the stock began to be suspended from the opening of the market on July 18.

From May 24 to June 21, 2024, the closing price of Zhongyin Wool Industry was less than one yuan for 20 consecutive trading days, triggering the forced delisting situation. On June 24, Zhongyin Wool Industry was officially suspended and its listing was terminated by the Shenzhen Stock Exchange.

From June 4 to July 2, the closing price of Pengdu Agriculture and Animal Husbandry's stock was less than 1 yuan for 20 consecutive trading days, triggering the situation of termination of listing of stocks on the Shenzhen Stock Exchange. The Shenzhen Stock Exchange intends to decide to terminate the listing of Pengdu Agriculture and Animal Husbandry's stock. Pengdu Agriculture and Animal Husbandry's stock has been suspended since the opening of the market on July 3.

On July 17, Guanghui Auto opened at the limit down, down 10.34%, closing at 0.78 yuan. The share price has been below 1 yuan for 20 consecutive trading days. According to the listing rules of the Shanghai Stock Exchange, the stock has reached the conditions for delisting. On July 18, it announced a suspension of trading.

Market value and stock price both hit the "red line"

It is worth noting that the closing market value of some companies' stocks has been below 500 million yuan for 20 consecutive trading days, which may trigger the risk of market value withdrawal.

According to the market capitalization delisting rules, exchanges usually set minimum market capitalization requirements. If a company's market capitalization is lower than this requirement for a long time, it may be delisted.

The new "Nine National Rules" emphasize that it is necessary to improve the market value standard and other trading-related delisting indicators. According to the requirements, the Shanghai Stock Exchange will appropriately increase the market value delisting indicator for A-share (including A+B shares) listed companies on the main board to 500 million yuan. The market value standard for companies on the Science and Technology Innovation Board remains unchanged at 300 million yuan. The trial period will begin six months after the new listing rules are issued and implemented, which is October 30 this year.

According to the data from Tonghuashun, there are 20 companies facing the risk of market value delisting, including 11 ST companies. Among them, there are 7 companies with an average total market value of less than 400 million yuan in the past 20 trading days, namely *ST Shentian, *ST Chaohua, *ST Meiji, *ST Meishang, *ST Meixun, Henghe Shares and Chunguang Pharmaceutical. The last in market value is *ST Meishang, with a market value of only 87.66 million yuan.

In addition, according to the rule that the par value of a stock is usually 1 yuan per share, "less than 1.5 yuan per share" is an important signal that triggers the risk of delisting. Data shows that there are 23 stocks with a share price between 1.5 yuan and 1 yuan, and all of them are ST companies. If the share prices of the above companies fall further, they are very likely to trigger the "par value delisting" condition and be delisted.