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China to delist record number of firms to ensure 'survival of the fittest'

China has introduced a US-style system to make listing easier for Shenzhen's start-up board ChiNext. The system was first adopted by Shanghai's tech-focused STAR Market

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Among the 26 companies that Refinitiv data shows are in the process of being delisted are former high performers like Leshi, an Internet information service business, as well as some fraudulent ones.

Reuters Shanghai

2 min read Last Updated : Jul 15 2020 | 3:50 PM IST

Having begun delisting 26 companies so far this year, China's securities regulator is set to remove a record number of firms from the stock exchange, heeding a message from Vice Premier Liu He to ensure the "survival of the fittest".

Liu reinforced the urgency to weed out bad companies from the stock market at a meeting of the State Council on Saturday, heralding a change in approach for the regulator, which had only delisted 110 companies between 2001 and 2018.

China has introduced a US-style system to make listing easier for Shenzhen's start-up board ChiNext. The system was first adopted

Topics : China markets Delisting chinese companies

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