Chinese Stocks: Urgent! Central Companies Receive Regulatory Letters, New Policies Expected, First Market Value Delisting
I. The China Securities Regulatory Commission (CSRC) will announce policies and measures related to the capital market during the 2024 Lujiazui Forum
On the morning of June 19th, CSRC Chairman Wu Qing will attend the opening ceremony and plenary session of the forum, and deliver a keynote speech on "Promoting World Economic Growth with High-Quality Financial Development". In the afternoon of June 19th, CSRC Vice Chairman Fang Xinghai and Shanghai Stock Exchange Chairman Qiu Yong will deliver keynote speeches on "Technological Innovation and High-Quality Development of the Capital Market".
The CSRC will announce policies and measures related to the capital market.
Since the issuance of the new "Nine Articles" on April 10th, the securities market has been under high pressure for rectification, with daily occurrences of ST stocks, case investigations, inquiry letters, warning letters, attention letters, regulatory letters, etc., resulting in a daily plunge in the market.
So, if the new policies and measures come out on the 19th, will they be even more severe crackdowns or will they include policy measures to stimulate the stock market to rise? It is worth looking forward to.
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II. The first company to delist due to market value
On the evening of June 4th, *ST Shen Tian issued an announcement stating that the market value of the company's stock closed below 300 million yuan on June 4th. According to the relevant regulations of the exchange, if the company encounters this situation for the first time, it should disclose the risk warning announcement that the company's stock may be terminated from listing before the market opens on the next trading day. If the total market value of the company's stock closing is below 300 million yuan for twenty consecutive trading days, there will be a risk of the company's stock being terminated from listing.
When the new "Nine Articles" were promulgated, people still said that there were no companies that met the market value delisting criteria. Now it has started with the first one, and as the stock market remains sluggish, there may be more such situations.
III. A genuine central enterprise receives a regulatory letter
China Publishing Group Co., Ltd., a listed company with a 68.44% stake held by a subsidiary of the State-owned Assets Supervision and Administration Commission (SASAC), received a regulatory letter regarding the supervision of the use of raised funds, involving listed companies, intermediaries, and relevant personnel.This is the first time a legitimate central enterprise has received a regulatory letter.
Will there be a limit down? Will there be a plunge?
If there is, what companies can stock investors still believe in? Just yesterday, someone said that local state-owned enterprises can no longer be trusted, as several have already been designated as "ST" companies. Leading local industry companies can no longer be trusted either, as evidenced by the case of Ningxia Zhongyin Cashmere, which has been limit down for several days after receiving an inquiry letter, with its current stock price at only 0.6 yuan. It has been below 1 yuan for 8 days, essentially on the verge of delisting. After Jinzhou Port was designated as an "ST" company, the subsidiaries of central enterprises can no longer be trusted. Only central enterprises with "China" in their names can be trusted.