Why did A-share listed companies withdraw from the market?
1, poor management of listed companies. The profitability and financial status of listed companies are one of the most concerned indicators for investors. If a listed company has suffered serious losses or declared bankruptcy for the last three consecutive years, the regulatory authorities may delist it.
2. There are problems such as violation of laws and regulations. If a listed company fails to disclose its financial status as required, or is suspected of financial fraud, it may be delisted. For example, if a listed company inflated its profits and concealed important information, it would be delisted if it was confirmed by the regulatory authorities after investigation.
How to prevent delisting risk?
1, stock selection should strictly examine the company's fundamentals. Investors should carefully study the company's financial status, profitability, governance structure and other factors when choosing investment targets to avoid choosing companies with delisting risks. Before buying stocks, investors can learn about the company's operation by studying its annual and quarterly reports and other public information.
2. Pay attention to the delisting supervision policy. Investors should pay attention to the relevant policies and announcements of the regulatory authorities, understand the delisting rules of listed companies, and analyze the factors that may affect the delisting of listed companies in order to make corresponding investment decisions. Investors can learn about the changes of delisting rules by paying attention to the announcements and notices issued by the CSRC, exchanges and other regulatory authorities, so as to take more targeted preventive measures.
3. diversify investment. Investors should spread their funds among stocks of different industries and styles, and avoid concentrating on a single stock or industry, so as to reduce the impact of delisting risk on the portfolio. Investors can also consider buying equity funds or ETFs to realize diversified investment of funds to prevent the impact of the company's delisting risk on the portfolio.