On April 15, the China Securities Regulatory Commission (CSRC) issued the Opinions on Strictly Implementing the Delisting System (the "Opinions") and drafted six rules, including the Decision on Revising the Guidelines for Evaluation of Science and Technology Innovation Attributes (for Trial Implementation) (Draft for Comment) and the Decision on Revising the List of the China Securities Regulatory Commission on Random Inspection Matters (Draft for Comment), to solicit public opinions by April 27, 2024.
The Opinions, with a view to raising the overall quality of the existing listed companies, ramp up efforts to eliminate "zombie", "shell" and "black sheep" companies, and reduce the value of "shell" resources by strictly implementing the delisting standards; meanwhile, the Opinions call for providing diversified delisting channels and enhancing the protection of the investors of delisted firms. Specific actions involve the following areas: (1) strictly implementing mandatory delisting standards; (2) further providing smooth multiple delisting channels; (3) reducing the value of "shell" resources; (4) strengthening the regulation of delisting; and (5) ensuring compensation relief for delisted investors.
(Source: China Securities Regulatory Commission)
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