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Measures on Delisting of Poorly-performed Companies Applicable to B Share Companies
Person in charge of China Securities Regulatory Commission (CSRC) Thursday gave a further explanation on the Implementation of "Measures for Suspending and Terminating the Listing of Loss-making Listed Companies".
He said that the measures are not only applicable to A shares companies, but also suitable for B Shares companies. Companies that are in the red for three consecutive years shall be suspended and terminated from market in accordance with the regulations as stipulated in the measures according to the law. Share investors should be aware of the risk in the investment.
The launch of delisting of loss-incurred companies is a great move for China to promote a healthy and sound development of China's securities market. The CSRC published the Measures on February 24 this year, specifying the conditions, legal procedures, information disclosure, limits of authority and other matters in relation to the suspension and termination of listed companies that have been loss-making for three consecutive years. This indicates that the phenomenon of "Only list in market but do not delist" will become a thing in history.
By PD Online staff member Li Yan
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