Vaccine maker Changsheng to be delisted
quality of listed companies and protect investor interest.
A number of underperforming listed companies, including ST Changsheng, have been forced to delist this year, as the latest delisting regulations took effect.
As part of efforts to improve regulation, the government revised rules earlier this year, adding fresh terms and conditions for delisting scenarios. One of them has been invoked to make the delisting a specific response to the vaccine maker’s conduct in the stock market.
In the latest version of delisting rules, listed companies found to be falsifying records or failing to disclose important information or harming public health and public safety will be forced to delist, according to separate announcements made by the Shanghai and Shenzhen stock exchanges.
In October, the CSRC had imposed a fine of 600,000 yuan ($86,500) on Changsheng.
The China Food and Drug Administration also said it had imposed penalties on the company, including a fine of 9.1 billion yuan, besides banning 14 of its executives from working in the industry again.
Market insiders said strict implementation of delisting rules is a promising sign of further reforms in the A-share market.
Strategists with Chongyang Investment wrote in a report that an effective delisting framework would provide incentives for suspended issuers to act promptly towards resumption, and would help address the problem of prolonged suspension of trading in issuers’ listed securities.
For long, China’s stock markets have been dominated by speculationindividual investors, resulting in high volatility.
Since the first delisting in 2001, the A-share market has seen only 57 firms delist despite a reform of rules in 2014, according to Wind, an information service provider.