New Bourse Rules: Harming Public Health May Cause Delisting Order
Du Qingqing
DATE:  Jul 30 2018
/ SOURCE:  Yicai
New Bourse Rules: Harming Public Health May Cause Delisting Order New Bourse Rules: Harming Public Health May Cause Delisting Order

(Yicai Global) July 30 -- China's stock market regulator may force Chinese listed companies that put public health into jeopardy to delist.

The China Securities Regulatory Commission issued a policy adjustment on Friday under which it can order bourses to decide whether to suspend or terminate the listing of companies that are involved with a fraudulent issuance, major violations of information disclosure rules, or harming national and public security, ecology, production safety, and public health. The new policy took effect upon its release.

Public safety and health may have come to the CSRC's attention because of the past weeks' fake vaccine scandal that has rocked China. Changsheng Bio-Technology forged production records of a vaccine given to babies across the country as it came out on July 20. Changsheng will likely become the first company to delist from the stock market, market insiders said.

The policy shift widens the scope for breaches that may cause a forced exit. So far, loose regulation has shaped the market so that poor earnings data and recorded net losses for three consecutive years are the most common reasons for delisting, and market players say that some fake the data to avoid such measures. 

Editor: Emmi Laine 

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Keywords:   Financial Regulation,Delisting Rules,CSRC,Bourse Rules,Stock Market,A-Shares