Guo Ruiming, Director of the Supervision Department of Listed Companies of the China Securities Regulatory Commission, stated on April 16 in response to issues related to dividends and delisting that the adjustment of delisting indicators is aimed at increasing efforts to eliminate "zombie shells" and "black sheep", rather than targeting "small cap stocks". The market believes that the revision of the delisting rules is mainly aimed at small cap stocks, which is purely a misreading. He introduced that the revision of the stock listing rules and the implementation of other risk warnings (ST) for non compliant dividends mainly focus on improving the stability and predictability of dividends for listed companies, with a focus on companies that have the ability to distribute dividends but do not receive dividends in the long term or have a low dividend ratio. It should be pointed out that ST is not a delisting risk warning (* ST), mainly to remind investors to pay attention to the company's risks. If the company is ST only for this reason, it will not lead to delisting; After meeting certain conditions, you can apply for the revocation of ST. The implementation of ST is aimed at profitable enterprises, that is, companies with a positive net profit in the most recent accounting year and a positive undistributed profit at the end of the parent company's financial year. In determining the implementation conditions, ST will only be implemented when the cumulative dividend ratio (the total cumulative cash dividends in the past three accounting years are less than 30% of the average annual net profit in the past three accounting years) and dividend amount (the main board shows that the cumulative dividend amount in the past three accounting years is less than 50 million yuan, while the Science and Technology Innovation Board and ChiNext Board are 30 million yuan) do not meet the requirements. The conditions for setting the rules fully consider the characteristics of large R&D investment by enterprises on the Science and Technology Innovation Board and the Growth Enterprise Market, and some enterprises still in the early stages of industry development. For enterprises with high R&D intensity (cumulative R&D investment in the past three accounting years accounting for more than 15% of cumulative operating income) or large R&D investment (cumulative R&D investment in three years exceeding 300 million yuan), even if the dividend does not meet the above conditions, they will not be implemented with ST. Based on data from 2020 to 2022, there are only over 80 companies in the Shanghai and Shenzhen stock markets that may meet this standard. Last Friday, the China Securities Regulatory Commission issued the "Opinions on Strictly Implementing the Delisting System", and the stock exchange simultaneously released the revised stock listing rules, soliciting public opinions from the market. Guo Ruiming pointed out that the adjustment of delisting indicators has been prudently arranged in terms of standard setting and transition period arrangement, and will not have any impact on the market in the short term. According to calculations, it is expected that around 30 companies will be delisted from the Shanghai and Shenzhen stock markets next year due to the application of combined financial indicators; There are about 100 companies that may hit the target and implement delisting risk warnings next year. These companies still have more than a year and a half to improve their operations and quality, and will only be delisted if they still fail to meet the standards by the end of 2025. In terms of market value indicators, currently only four main board companies in the Shanghai and Shenzhen stock markets have a market value below 500 million yuan, and there are currently no delisting indicators for companies on the Science and Technology Innovation Board and the Growth Enterprise Board with a market value close to 300 million yuan. (Lai Xin She)