ChiNext delisting rules published

Apr.21, 2012

ChiNext delisting rules published by Shenzhen Stock Exchange’s statement,April 20,2012.

The rules add two new delisting criteria since the draft amendments published:

ChiNext-listed firms that have been publicly censured by Exchage three times in the latest 36-month period will be delisted.
Chinext-listed firms whose share prices have been lower than their par value for 20 consecutive sessions will be delisted.

Other criteria:
ChiNext-listed firms whose net assets are negative for two consecutive years will be delisted.
ChiNext Board will not use *ST treatment for firms which dificit continues consecutive 2 years as Main Board used.
ChiNext-delisted firms will go to China Third Market or similar boards.
ChiNext Board does not support backdoor listing.

The rules, which amend a plan announced in February, will come into effect on May 1, according to the statement.

Since the introduction of the delisting process in 2001, 45 companies have been delisted in China.