Sixth-Round A-Share Delisting Reform Adopts Revenue Test, Abolishes Suspension Stage

Since the 2006 Securities Law revision, the delisting system for A-share listed companies has undergone six rounds of reform. In November 2020, the Central Commission for Deepening Reform reviewed and approved the relevant plan, and the China Securities Regulatory Commission subsequently launched the fifth round of delisting system reform. This round aims to adjust delisting standards and procedures to improve the efficiency of market resource allocation.

The fifth round of reform comprises three main adjustments. First, the continuous-loss delisting indicator is replaced by a test combining deducted non-recurring profit or loss with RMB 100 million in operating revenue, altering the previous single financial judgment approach. Second, once a listed company is placed under *ST status, non-standard audit opinion delisting standards are applied cross-wise to close loopholes by which companies evade delisting through financial fraud or non-standard audit opinions. Third, the suspension-of-listing procedure is abolished, with companies moving directly into the delisting process, improving delisting efficiency and reducing prolonged trading halts.