China's securities regulator has emphasized the strict standards for delisting companies, stating that not all companies under risk of delisting will be delisted. According to Wang Li, a spokesperson for the regulator, the 36 companies listed as risk of delisting (*ST) are actively working to resolve their delisting risks through various means such as improving their operations, mergers and acquisitions, and debt restructuring. However, the 66 companies mentioned in recent media reports as possible delistings in 2024 are not necessarily destined for delisting. They have a further year to improve their operations and mitigate their risks.
ST, or 'Sensitivity and Treatment' marks are not directly related to delisting. They are a warning signal to alert investors to potential risks in a company's operations, management, or production. Companies tagged with an ST will not be delisted directly, and can still be removed from the status once they have rectified the issues. The regulator has assured that the delisting process will be carried out in a smooth and legal manner.