Meisheng Culture, maker of the Princess dress under license from Disney, is one of the firms forced to delist its shares.Securities Regulatory Commission released the “Guidelines on the Strict Implementation of the Delisting System” report and the three stock exchanges in Shanghai, Shenzhen and Beijing formulated new delisting rules.
On the one hand, there are more than 5,300 listed companies on the A-share market with ups and downs driven by multiple forces, resulting in the waste of listing resources that should have created concrete value for investors. On the other hand, there is a continuous tightening of the regulations for listed companies and the increasing ease of delisting.
But its decline began to show after 2015. Frantic acquisitions by the company failed to deliver the expected growth as promised, and with them came a succession of M&A defeats. The last straw that really impacted the company was the file against its founder, who was suspected of information disclosure violations.
Unfortunately, ST Xinye and ST Sunshine were facing a similar situation, even delisting due to executive misbehavior. The stock price of ST Sunshine has fallen over the last week, with a cumulative decline of more than 27 percent in the current year, and it also is facing the risk of delisting.