The健全的 delisting mechanism of the A-share market has turned one after another "crow" into an "immortal bird". Thus, a series of "crows' journeys to become phoenixes" have been staged. The consecutive daily limit-up increase of *ST Shengrun started on February 1 this year. After mysteriously pulling off six consecutive daily limit-ups for no apparent reason, the company's restructuring announcement was belatedly released: it turned out that the company was going to merge and restructure itself into an automobile parts company.
The dramatic abnormal continuous fluctuations in stock prices, which are like crows turning into phoenixes, are always the most attention-grabbing phenomena in the capital market. It is precisely this anticipation of "crows turning into phoenixes" that has led to repeated speculative trading of *ST shares on the verge of bankruptcy with almost no value. This forms one of the most pathological oddities of the A-share market. It not only promotes the prevailing风气of speculation among investors seeking overnight wealth, but also easily leads to illegal acts such as insider information leaks and market manipulation.
It's time to end this game. Currently, the delisting system plan for the Growth Enterprise Market (GEM) has entered the public consultation phase. Its content, including "diversified delisting standards, direct and rapid delisting, and no support for backdoor listings," directly addresses the aforementioned chronic problems. Regulatory authorities have also revealed that the GEM delisting system will pave the way for the main board, and the reform思路for the main board delisting system has already been initially formed.
"Two-One-Two" achieves "immortal birds". The difficulty of delisting urgently needs reform. Although it cannot be ruled out that some listed companies may welcome new life after reorganization, most junk stocks still lack profitability after reorganization, leading to the tragedy of "crows turning into phoenixes, then phoenixes turning back into crows." For example, *ST Baocheng changed hands five times, and repeated reorganization stories did not give the company sustained profitability.
A seasoned person who has led multiple mergers and acquisitions cases said, "Except for the A-share market, there are very few reverse takeovers around the world. The reverse acquisition of Chinese concept stocks in the U.S. is a form of shell borrowing, but facts have proven that problems multiply after shell reorganization, and previously Chinese concept stocks' reverse acquisitions were also blocked in the U.S."
In each reorganization, the reorganization participants and those informed about inside information are the biggest beneficiaries. For example, just before the reorganization, a Shenzhen-based private equity fund aggressively acquired shares in *ST Shengrun, achieving more than double the floating profit. Small and medium-sized investors generally buy ST shares after seeing their consecutive surges, often becoming the last ones holding the bag.
There is no denying that some ST shares have degenerated into tools for malicious market manipulation by capital players. The significant defect in the A-share main board delisting system gives them ample room for maneuvering and manipulating, making them act with impunity.