Vac­cine maker Chang­sheng to be delisted

China Daily (Canada) - - MARKETS -

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.

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