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On 16 October 2018, a major subsidiary of Changsheng Bio-technology Co., Ltd. (hereinafter referred to as Changcheng Bio-technology or the Company) received an administrative penalty, i.e. the revocation of drug manufacturing certificate, imposed by the National Medical Product Administration department and had to pay a fine of CNY9.1 billion for illegal vaccine production. The subsidiary has made major violations of law involved such fields as national security, public security, ecological security, production safety, as well as public health and safety. According to the CSRC Decision on Amending the Opinions on Reforming, Improving and Strictly Implementing the Delisting System for Listed Companies, Clause II, Article 5 of the SZSE Implementation Measures on Forced Delisting of Listed Companies for Major Violation of Law (hereinafter referred to as the Implementation Measures), Article 2 of the Notice on Issuing the Rules Governing Share Listing on Shenzhen Stock Exchange (November 2018 Revision), Rules Governing the Listing of Shares on the Chinext of Shenzhen Stock Exchange (November 2018 Revision) and Implementation Measures of Shenzhen Stock Exchange for the Relisting of Delisted Companies (November 2018 Revision) (hereinafter referred to as the Notice), Changcheng Bio-technology might be involved in the circumstances of forced delisting for major violations of law and SZSE activates the forced delisting mechanism for major violations of law against Changcheng Bio-technology.
Pursuant to Article 4 of the Notice, the Company stock would be under trading suspension from the next trading day of issuing the Implementation Measures. That day is also the start for counting the 15 trading days within which the SZSE Listing Committee would make an independent professional judgement and develop preliminary review opinions. Later, SZSE will act upon relevant rules to make the decision of implementing forced delisting for major violations of law or not against the Company stock. If yes, SZSE will implement delisting risk warning, listing suspension and listing termination against the Company stock in accordance with law. The period for delisting risk warning lasts for 30 trading days and that for listing suspension is six months. When SZSE makes a delisting decision, the Company stock will enter into a delisting transitional period lasting for 30 trading days.
SZSE, under the CSRC leadership, will practically assume its lawful duties of frontline regulation, seriously perform the entity responsibilities for delisting, and safeguard the solemnity and authoritativeness of delisting system to ensure strict implementation of the system. With regard to the companies that commit serious violations of law, such as seriously harming market order, infringing upon people's interests and causing grave social impact, SZSE is resolute to delist any one of such companies found to purify market environment, improve market quality, and form the market ecology of survival of the fittest.
