SZSE's new listing rules officially implemented: revisions to delisting and other content

　　On the afternoon of the 7th, the Shenzhen Stock Exchange (SZSE) officially released the "SZSE Stock Listing Rules (2012 Revision)" (hereinafter referred to as the "New Listing Rules"), revising the original rules on delisting, suspension, and resumption of trading. According to the introduction, the New Listing Rules have been reviewed and approved by the SZSE Council and the China Securities Regulatory Commission (CSRC), and will come into effect upon release.
　　According to the SZSE, the New Listing Rules address loopholes in the original delisting system. The original delisting rules lacked clear definitions and requirements for non-recurring income such as government subsidies and supplementary materials, resulting in a prominent issue of many companies remaining suspended without delisting. This delisting system proposal adds a non-net profit standard and a requirement to complete supplementary materials within 30 trading days, providing more specific regulations for two key issues in the resumption of listing process.
　　The New Listing Rules improve delisting standards, forming a market-oriented and diversified delisting indicator system. Addressing the prominent issue of long-standing "zombie" companies in the market, this delisting system proposal adds relevant financial indicators such as net assets and operating income, and includes delisting standards such as retrospective restatement and non-standard audit opinions; at the same time, drawing on common practices in international securities markets, it adds two market trading delisting standards: trading volume and trading price, further preventing listed companies from using various means to avoid delisting.
　　The New Listing Rules clarify the standards for resumption of listing and re-listing, reducing irrational market expectations for restructuring. Addressing past phenomena in the stock market such as "bad money driving out good money" and speculation in "shell resources," this delisting system proposal establishes more detailed and specific standards for resumption of listing and re-listing, further clarifying market expectations and curbing speculation in poorly performing company stocks.
　　In addition, regarding revisions to the routine suspension system, the New Listing Rules mainly cancel routine suspensions that are not practically significant based on changes in market conditions, including the cancellation of routine suspensions for shareholder meeting dates and announcements of unusual stock price fluctuations.