Shenzhen Bourse to Speed Up Forced Delisting Process
Liao Shumin
/SOURCE : yicai
Shenzhen Bourse to Speed Up Forced Delisting Process


(Yicai Global) Nov.19 -- The Shenzhen Stock Exchange has brought in new regulations of the process of forced delisting to make it quicker for firms to be removed.

The new measures reduce the trading suspension period for firms violating major laws from twelve months to six months after which their listing is directly terminated, the bourse said in a statement.

The revised measures mean that companies can be delisted for major violations of laws related to national security and public interests. Additionally, companies that have been delisted due to fraud are unable to apply for re-listing while violators of other laws must wait five years to reapply for listing, up from one year previously.

SZSE has also refined its classifications for false records, misleading statements and omissions of important information. The bourse will terminate listings for major violations of the above mentioned three issues related to initial public offering prospectuses, asset purchases via share offering, annual reports.

The stock exchange will deal harshly with listed companies committing financial fraud to retain their listing status, seriously disrupting market order, occupying market resources, and distorting prices.

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Keywords: Shenzhen Stock Exchange , Delisting