BEIJING, Dec. 16 (Xinhua) -- The Monday-debuted draft delisting rules of China's Shanghai and Shenzhen stock exchanges are expected to further improve the quality of A-shares, reported Xinhua Finance, a Xinhua-run financial information platform on Wednesday.
The report citing a research report of Huatai Securities said that the draft delisting rules differ from the past ones with optimized delisting standards, simplified delisting procedures and reinforced delisting supervision and regulation.
The draft rules, which were mapped out to invite public comments from Monday, improve requirements of four types of compulsory delisting, cancel procedures on temporarily stopped listing and resumption of listing, shorten the required delisting timing span to 15 trading days, and allow a cushion period for transitional arrangement.
Compared with the U.S. stock market, China's A-share delisting rate has still much room to improve and the number of delisted stocks is also likely to increase step by step in the future.
The Huatai Securities report held that future implementation of the draft stock delisting rules can help improve A-share market with market-oriented delisting and realize squeezing of poor quality stocks by good quality stocks, all of which are expected to improve the quality of A-shares and reshape the A-share market valuation.
By Tuesday closing, there were 208 A-share listed companies deemed with delisting risks, excluding 15 ones temporarily suspended for listing. Among them, nearly 70 percent of firms saw their stocks down on Tuesday, hinting effect of the new delisting rules. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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