Hong Hong shares were forced to withdraw from the Shenzhen Stock Exchange reminder: do not buy at any time during the delisting period.

November 2018 08, 20:56, source: People's Network - financial channel
 

People's daily, Beijing, November, 8 (reporter Zhu Yifan) late tonight, the Shenzhen Stock Exchange made a decision to terminate the listing of shares. Hong Hong shares became the first company to be forced to terminate the listing due to its stock price being lower than the face value.

Continuous disclosure of major risks such as heavy losses, overdue major projects, etc.

Since 2018, Zhong Hong shares have disclosed major risks such as large performance losses, overdue debts, major projects downtime and other major risks. Investors have expressed their value of investment through market behavior. In August 15, 2018, the closing price of the company's shares was first below par value (1 yuan). From September 13, 2018 to October 18, 2018, the daily closing price of the company's stock for twenty consecutive trading days was lower than the face value of the stock (1 yuan), which falls under the provisions of article 14.4.1 of the stock listing rules. In accordance with article 14.4.11 of the listing rules, the company's shares will be suspended from October 19th.

According to the notice issued by the Shanghai Stock Exchange, according to the provisions of article 14.4.1 (eighteen) and 14.4.2 of the Shenzhen Stock Exchange Listing Rules (2018 Revision), as well as the examination opinions of the listed Committee of the stock exchange, in November 8, 2018, the company decided to terminate the listing of the company's shares and enter the delisting and finishing period since November 16, 2018. The period of delisting is thirty trading days, and the next day after the expiration of the delisting period, the company delisted the shares of the company.

The Shenzhen stock exchange performs the hearing procedure according to the regulations before making the decision to terminate the listing of the company's stock, and fully protects the right of the listed company to defend itself. In October 23rd, the Shenzhen Stock Exchange issued the "advance notice" to the Hong Kong stock company, which informed him that he had the right to apply for a hearing. On the same day, the company filed a hearing application. In November 6th, the Shenzhen Stock Exchange listed Committee held a hearing on the termination of the listing of the shares, listened fully to the company's on-the-spot statements and pleading opinions, and obtained more comprehensive audit information. At the same time, it clearly revealed to the parties the facts and rules based on the decision to terminate the listing, so as to ensure the legal compliance of the withdrawal process, and the market participants' right to participate and the right to know were effectively protected. On the same day, the Listing Committee held a working meeting to discuss the listing of Hong Hong shares. According to the opinion of the listing committee, the criteria were objective, clear and clear, and the Shenzhen Stock Exchange made the decision to terminate the listing of shares.

Shenzhen Stock Exchange: in accordance with the law to perform duties fully prompts risks

The Shenzhen Stock Exchange said that since the outbreak of related risks in China Hong Kong stock exchange, the Shenzhen Stock Exchange has implemented the front-line regulatory responsibilities according to law, strictly disclosing information, fully disclosing risks, and earnestly safeguarding the legitimate rights and interests of small and medium-sized investors.

First, strengthen supervision of information disclosure. In recent years, the shares of China Hong Hong have been transferred frequently and the asset liability ratio has been rising continuously. The Shenzhen Stock Exchange has always listed it as a high-risk company. It has repeatedly sent letters to pay attention to and urge the company to supplement and correct relevant announcements, so as to ensure that the information disclosure is true, accurate and complete, and fully protect the right to know of small investors. In the evening of August 27, 2018, the company applied for disclosure of the announcement of the debt restructuring and trusteeship agreement with the group such as JDB group. The Shenzhen Stock Exchange was concerned that the agreement was not considered by the board of directors, it had no substantive binding force and whether it could carry out significant uncertainties. Having confirmed that the relevant disclosure documents are available, the Shenzhen stock exchange requires the company to disclose the full text of the agreement and to give priority to the above-mentioned risks in the announcement's eye-catching position, so as to earnestly protect the legitimate rights and interests of investors. In the morning of August 28th, when JDB issued a denial statement, the Shenzhen Stock Exchange temporarily suspended the company's stock, and immediately sent a letter to the company to verify the resumption of trading after clarification, maintain the fairness and integrity of information disclosure, and ensure that investors make investment decisions on the basis of adequate information disclosure.

Two is to continue to disclose the risk of termination. Since the closing price of China Hong stock was first reached 10 consecutive trading days in August 28, 2018, it was lower than the face value of stock. The Shenzhen Stock Exchange continuously urged the company to suggest that the stock might be terminated. In addition, in August 14, 2018, the company was investigated by the SFC on the basis of the false report of the first quarter report, the semi annual report and the three quarter report disclosed in 2017. The Shenzhen Stock Exchange asked the company to fully disclose the risks of major illegal delisting caused by the above matters.

The three is to make disciplinary measures according to the law. In the 2017 annual report review of Zhong Hong shares, it was found that the company had committed 6 billion 150 million dollars in violation of the payment of the purchase, not disclosed any major administrative penalties in a timely manner, failed to return the funds raised at the expiration of the refunds, and lagged behind in the announcement of the performance announcement. The Shenzhen Stock Exchange promptly identified the facts, launched the disciplinary procedures, and publicly condemned the company and its responsible persons in September 4th.

Reminder of the Shenzhen Stock Exchange: no buying at any time during the delisting period.

According to the provisions of article 14.4.23 of the stock listing rules, the company's stock will enter the delisting and finishing period since November 16, 2018, and the trading period will be 30 trading days. The securities will be changed to "Zhong Hong retreat" for short, and the daily price limit of stock prices will be 10%. The Shenzhen Stock Exchange will delisting the company's shares on the next trading day when the delisting period is expired.

The delisting period is the last trading opportunity provided by the delisting company investors before the delisting of the company's stock. The purpose is to release the risk. The Shenzhen Stock Exchange recommends that investors carefully read the relevant announcements issued by the company and the special provisions of the Shenzhen stock exchange delisting finishing period, paying close attention to the investment risks of the upcoming delisting companies.

After the delisting can still be transferred, the company still needs to fulfill its obligations.

According to the relevant rules, the company's stock will be transferred to the National SME share transfer system (hereinafter referred to as "stock transfer system") within forty-five trading days after the delisting period is expired. The Shenzhen Stock Exchange will supervise and urge the company to fully disclose the arrangement of investors' rights, registration and trusteeship, the way of company contact and the way to understand the company's information, so as to protect investors' rights and interests.

According to the relevant provisions of the Interim Measures for the transfer of shares of the two network companies and the delisting companies in the national share transfer system of small and medium-sized enterprises, the shareholders of the company must resume the transfer of shares right, registration and trusteeship. Details of how investors can resume the above procedures and how to transfer shares of the delisting companies through the stock transfer system can be registered on the website of the stock transfer system.

After the termination of the listing of shares, the shares of the Hong Hong Company still belong to the Limited by Share Ltd. The company should abide by the provisions of the company law and continue to fulfill the obligations of the public company and undertake social responsibility, so as to ensure that the rights enjoyed by the shareholders of the company are not changed due to the change in the status of the listing of the company's shares.

(Editor: Zhu Yifan, Li Dong)

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