Since the beginning of this year, A-shares have experienced weak volatility, with an increase in the number of delisted companies that hit par value, and a significant increase in ST companies and * ST companies that have increased their holdings to protect the market. According to incomplete statistics on the announcements of listed companies, in the past month, 11 ST companies and * ST companies have issued actual controller and executive increase announcements, compared to only 2 companies in the same period last year. Among the 11 companies mentioned above, 9 have stock prices that are already below or close to 1 yuan per share. Since the implementation of the comprehensive registration system, the pressure on ST company to delist has further increased. Some shareholders of the company hope to rebuild confidence and overcome difficulties through increasing their holdings and other mergers and acquisitions. "Chen Li, Chief Economist and Director of the Research Institute of Chuancai Securities, told Securities Daily that from a technical perspective, increasing their holdings may solve short-term problems, but in the medium to long term, Listed companies still need to focus on high-quality development in order to give investors more confidence. On the evening of June 1st, ST Xinhai issued three announcements, including the actual controller's increase of over 1%, the actual controller's next increase plan, and the company's face of face value delisting risk. The stock faces delisting risk, and the actual controllers of listed companies increase their holdings, indicating a clear protective effect. On June 2nd, * ST Xinhai rose its limit and closed at 1.02 yuan per share, temporarily resolving the delisting crisis of face value. However, according to the advance notice of administrative penalties issued by the China Securities Regulatory Commission in January this year, due to false records in the annual reports from 2014 to 2019 and the semi-annual reports from 2019, the company's financial indicators for four consecutive years from 2016 to 2019 may touch the major illegal mandatory delisting indicators, and the delisting risk remains high. Gui Haoming, the chief market expert of Shenwan Hongyuan Securities, told Securities Daily that companies with stock prices below or close to 1 yuan per share often face a large number of uncertain factors, such as huge bad debts, debt risk, litigation risk, etc. Avoiding delisting risks by increasing holdings inherently carries significant risks. From the actual situation, after the announcement of increasing holdings, most ST companies' stock prices have been boosted to varying degrees, and some companies have even continuously raised their limit. However, there are also companies whose stock prices continue to decline, which cannot avoid delisting. For example, ST Meizhi and * ST Songdu still hit the face value delisting index after issuing the announcement to increase their holdings. According to a company announcement, on May 30th, ST Midea received a prior notice from the Shenzhen Stock Exchange to terminate its listing due to its daily closing price being below 1 yuan for 20 consecutive trading days. In addition, as of June 2nd, the closing price of * ST Songdu was 0.58 yuan per share, which has been below 1 yuan for 13 consecutive trading days. Even if the limit rises continuously for the following 7 trading days, the trading delisting index will be hit due to the stock price being below 1 yuan for 20 consecutive trading days. The operability of the increase in holdings plan has received attention due to the intensive issuance of increase in holdings announcements, and regulatory authorities are also constantly monitoring the feasibility of the increase in holdings plan to prevent "flickering" increase in holdings. For example, the above * ST Xinhai, on the night when the company released its shareholding increase plan, the concern letter of Shenzhen Stock Exchange came one after another, requiring the company to check whether the main body of shareholding increase has the financial strength to complete a new round of shareholding increase plan, whether the shareholding increase plan has realizability, etc. In addition, for the presence of