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Securities Times reporter Wang Xiaowei

Since the beginning of this year, landmark events have continued to appear in the delisting process. On the one hand, the number of par value delisting cases has continued to increase, and large-scale revenue companies have begun to delist at par value; on the other hand, Jianche B and *ST Shentian pioneered the "market value delisting"; the latest case is *ST Yaxing, which bid farewell to A shares through active delisting, becoming the first company to plan for active delisting this year. Combined with different categories such as financial delisting, regulatory delisting, and major illegal delisting, the characteristics of diversified and normalized delisting in the capital market are increasingly taking shape.

Different delisting methods reflect different demands or meanings. For example, in recent years, the number of companies delisted at par value has increased significantly, which points to many problems such as poor long-term performance of the fundamentals of the relevant companies, weak sustainable operating capabilities, and chaotic corporate governance. Secondary market funds tend to reduce irrational investments such as speculation on small and medium-sized stocks, and the market-based "voting" power is evident.

For example, voluntary delisting is often a market-oriented choice made based on the company's own strategic considerations. Some companies have considerations such as resolving competition from peers, some companies do so to reduce compliance and operating costs, and some companies do so to maintain the company's public image and investor relations, and to a certain extent avoid triggering securities class action lawsuits and other incidents.

After the new round of delisting reform plan was released and the exchange delisting rules were revised, it became an important direction to adhere to the principle of "delisting all that should be delisted", gradually build a normalized delisting mechanism, and form a market ecology with orderly entry and exit and survival of the fittest. The emergence of many iconic cases can be regarded as the waves of the market entering the era of "normalization of delisting", which shows that the new pattern of survival of the fittest in the capital market is accelerating.

For the market ecology, a mature, stable and healthy capital market must have smooth "entry" and "exit" to form a good ecology with both inflow and outflow and a virtuous cycle. As the registration system reform goes deeper and more practical, the normalized delisting mechanism has been consolidated and deepened, playing an important role in accelerating the metabolism of the capital market and optimizing resource allocation.

For investors, the most important concerns are often the various issues in the "aftermath" stage. For example, compensation and compensation issues. From the comparison of different delisting categories, the compensation plan for voluntary delisting cases is the most positive, whether it is the previous voluntary delisting of Erchong Heavy Equipment, or the voluntary delisting of Jingwei Textile Machinery due to the "Zhongzhi Group" incident, or the latest case of *ST Yaxing providing cash options, all of these companies are state-owned, and compared with some companies that have violated regulations such as capital occupation and cases of malicious operations such as bankruptcy liquidation, they are more responsible.

Diversification of delisting reasons can complete the puzzle of the market's "exit". In a sense, the "market value delisting" that appeared for the first time this year is complementary to the par value delisting. Some listed companies may have poor fundamentals, but their stock prices are still far higher than the par value. The par value delisting regulations are difficult to play a role in such situations. The market value delisting regulations can immediately eliminate some companies whose stock prices are still higher than the par value but whose market value continues to be below a certain threshold, thus achieving market clearance.

At the same time, there is a natural complementarity between voluntary delisting and forced delisting. Enterprise development is a systematic project. Track, management, cycle, operation, etc. are all core factors that affect whether a company can develop healthily in the long run. Compared with forced delisting, voluntary delisting is more conducive to providing a buffer for the company, surviving in adversity, transforming mechanisms, and finding new development opportunities. This is also the reason behind the mainstream market view that "taking a step back" will open up a new world.

It is true that knocking on the door of the capital market is a dream that many companies are pursuing, but listing is not the ultimate goal in the final analysis, but a means for companies to become bigger and stronger. Similarly, delisting is not the end in essence, but should be the starting point for companies to start anew or re-evaluate their value.

Compared with mature capital markets, A-shares still have differences in the motivations for active delisting. In the former, different companies have different reasons for actively withdrawing their listing status: some are because the stock price fails to reflect the company's intrinsic value, some are because the stock has been trading low for a long time and lacks financing capabilities, and some are because the company itself has business integration needs, etc. This difference also creates space for more diversified active delisting cases in the A-share market.

What is certain is that with the diversification of delisting reasons, China's capital market exit practices will become more diverse, thus further forming a pattern of both entry and exit and efficient allocation of market resources. Corporate entities should also establish a development vision and responsibility of "listing is not the end, delisting is not the end", and become an important driving force for further improving the quality of listed companies and consolidating the foundation of the capital market.