BEIJING, Jan. 6 (Xinhua) -- China's top securities regulator has said that it will look into improving delisiting rules for listed companies that are involved in major violations.
More issues need to be made clearer concerning the legal basis for delisting in such cases, the definition of a major violation, and the approach for delisting, Monday's Shanghai Securities News quoted Xiao Gang, chairman of the China Securities Regulatory Commission, as saying.
"Generally speaking, delisting will become a regular and market-based mechanism," Xiao said.
Half of delistings in recent years in China were voluntary due to companies' strategic restructuring or privatization, according to Xiao. He added that delisting will become a neutral mechanism, under which rule breaking or legal violations will not be tolerated.
The pillar criterion for delisting places the emphasis on companies' financial reports -- those that make losses for three consecutive years face suspension of share listing.
However, according to new rules issued in 2013, stocks may be delisted if tradings are too slow or the share price is cheaper than one yuan.