(Yicai Global) July 11 -- The number of companies that will be delisted from stock markets on the Chinese mainland this year will likely set a new all-time high.

After the Shenzhen Stock Exchange announced the delisting of two more firms yesterday, the total number pulled from Chinese bourses is 26 so far this year, bringing those already set for delisting by the end of the year to 40, according to data from Wind Information. A record 46 were removed last year.

The SZSE booted financial services provider Suna because its audited net profit was negative and operating revenue was less than CNY100 million (USD13.8 million) for two years, the bourse said yesterday, while Beijing Tensyn Digital Marketing Technology was removed after its 2022 audited net assets were negative and its auditor issued a disclaimer of opinion report two years running.

For a long time it has been hard for Chinese-listed firms to go through the delisting process and for firms with initial public offering plans to get listed. Many have noticed that small and poorly performing companies that face delisting risks get bought up by others that are planning IPOs, so that they can smooth their path to market.

Editor: Futura Costaglione