Delisting risk warning is A system in China A – share market.
In order to protect the legitimate rights and interests of investors and reduce market risks, on April 2 and April 3, 2003, the Shanghai Stock Exchange and Shenzhen Stock Exchange issued the Notice on Strengthening the Warning of Delisting Risk for Companies with risk of stock listing Termination. The “special treatment for warning of the risk of termination of listing”, referred to as “delisting risk warning”, shall be implemented for its stock trading.
The specific measure of delisting risk warning is to prefix the “*ST” mark before the abbreviation of the company’s stock to distinguish it from other company’s stock. During the delisting risk warning period, stock quotes are limited to a daily rise or fall of 5 percent.
In stock trading is the implementation of delisting risk warning situation after the elimination, the listed company shall apply to the stock exchange for canceling the special treatment, and shall, in accordance with requirements of the exchange in the revocation of delisting risk warning the previous session to make announcement, announcement, its stock and derived varieties were suspended one day from the date of resumption of exchange revoke the shares referred to as the “* ST.
The listed company shall issue an announcement 1 trading day before the delisting risk warning is implemented in stock trading.
Delisting risk warning stock how to do?
Delisting risk warning is usually caused by the bad operation of the listed company or the negative or rejection of the audit report. It is a kind of bad news, but it does not necessarily mean that the delisting will happen, so the stock price may fall in the short term. In the long run, investors want to see whether the company’s performance has improved, whether there is a theme to hype, if not investors can sell when the stock price rebound.
It should be noted that if a stock is already in the delisting consolidation period, the investor had better sell it. If it cannot be sold during the delisting consolidation period, it will be transferred to the stock-to-stock system trading.