Original title: Shanghai and Shenzhen Stock Exchange released guidelines for operating income deduction, experts say it will accelerate the survival of the fittest in the capital market
Our reporter Xing Meng
The Shanghai and Shenzhen Stock Exchange recently issued the “Financial Delisting” Operating Income Deduction Guidelines (hereinafter referred to as the Guide), clarifying the specific deductions of operating income in the financial delisting indicators, improving the enforceability of the financial delisting indicators, and implementing detailed delisting new rule.
Industry experts believe that the issuance of the operating income deduction guidelines will help clear related companies that do not have the ability to continue operations in a timely manner, prompting listed companies to focus more on their main businesses. For the A-share market, it will help improve the overall quality of listed companies and accelerate the survival of the fittest in the market.
The new delisting regulations issued at the end of 2020 added a new “net profit + operating income” combined financial indicator to the financial delisting indicators, in which operating income should be deducted from business income that has nothing to do with the main business and those that do not have commercial substance. income. In order to standardize the scope of deductions, the Shanghai and Shenzhen Stock Exchanges respectively issued the “Notice on Implementing the Deduction of Business Income under the New Delisting Regulations” and “Notice on the Deduction of Business Income Under the New Delisting Regulations” in April this year.
The guidelines released this time are a re-optimization of the above notifications and further unify the implementation of the standards. It mainly includes three aspects: the first is to refine the deduction requirements for trade and financial services; the second is to standardize the “stable business model” judgment standard; the third is to clearly deduct the income from the merger of abnormal transactions.
“The issuance of the guidelines is conducive to promoting listed companies to enhance their main business income capabilities.” Zheng Lei, chief economist of Baoxin Finance, told a reporter from the Securities Daily: “This is also a spur to those listed companies whose main business is not prominent. .”
“The publication of the guidelines is conducive to further standardizing the delisting rules of the stock market, combating listed companies maliciously evading delisting through improper earnings management, and then clearing out’shell companies’ and’zombie companies’.” Lawyer Gao Peijie from Beijing Jingshi Law Firm said “Securities Daily” reporter said that this will also help to improve the business model of related companies, strengthen the relationship between the company and the main business, promote the more substantive commercial transactions of listed companies, and play a positive guiding role in increasing operating income.
According to the Shanghai and Shenzhen Stock Exchange, this year, 502 listed companies on the Shenzhen Stock Exchange disclosed their operating income deductions in their 2020 annual reports. After the disclosure of the 2020 annual reports, a total of 42 companies on the Shanghai Stock Exchange were subject to delisting risk warnings, of which 25 were due to The newly added financial delisting indicators were implemented *ST.
“The guidelines further clarify the market’s delisting expectations and help improve the market’s survival of the fittest.” Dr. Ma Guoan, professor of law at Shanghai University of Finance and Economics, told the “Securities Daily” reporter that listed companies under the registration system are no longer a scarce resource, and investors are more concerned. A listed company with good quality. The above guidelines will promote timely clearance of companies that do not have the ability to continue operations, protect the legitimate interests of investors, and further maintain the order of the capital market.
“The guidelines issued this time have conducted more powerful monitoring of the “shell protection” methods commonly used in the past market, aiming to improve the overall quality of A-share listed companies. Strengthen the survival of the fittest in the market, provide protection for the deepening of the registration system reform, and finally form a capital market The positive feedback also allows listed companies to focus more on their main business.” Yan Kaiwen, chief strategy analyst at Huaxin Securities, told a reporter from the Securities Daily.
Yan Kaiwen believes that investors should pay close attention to the annual performance forecasts, performance forecast revision announcements, performance bulletins, risk warnings and other announcements disclosed by relevant listed companies, make investment decisions cautiously, and effectively prevent investment risks.