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What is delisting? What is the impact of delisting on the company

What does delisting mean? Delisting is the termination of listing, which means that if a listed company's term has expired or its listing conditions have not met, the stock exchange will terminate its listing and stop trading in the secondary market. Usually, a stock is going to be delisted and cannot be traded in the normal trading system.

In the stock market, delisting is mainly caused by the following five factors

1. The company decided not to apply for grace period.

2. Within the specified time (45 days after the company suspends trading), the application for grace period is not submitted or the application is not approved by the exchange.

3. After the suspension of listing, the company fails to publish its annual report according to the deadline of a broad time limit.

4. In the first fiscal year of the grace period, it is still a loss, or the financial report is issued a negative opinion by the certified public accountant or refuses to put forward an opinion.

5. The company's application for listing is not approved by the exchange.

Any of the above five situations will cause the company to delist. After receiving the decision of delisting from the exchange, the company needs to publish the announcement of delisting in shares in the designated newspapers and websites within two working days.

What is the impact of delisting on the company

Once the company is delisted, the investors who hold shares can only enter the stock transfer system for trading. This system has been officially launched since July 16, 2001, which is a trading market for listed companies to continue to circulate their shares after delisting. If you want to trade in this market, you must open a 'non listed company share transfer account'. To open this kind of account, you need to bring your ID card and copy to the business outlets of securities companies with the qualification of stock transfer.