Over 20 A-Share Listed Companies in China Face Delisting, Affecting at Least 250,000 Investors

(CNA, Taipei, 17th) According to Chinese media reports, since 2026, over 20 A-share listed companies in China have been targeted for delisting, involving long-term financial fraud and fraudulent initial public offerings (IPOs), with the delisting actions described as 'unprecedented in strength.' Some companies have seen their market capitalization evaporate by over 90%, while others have experienced stock price plunges exceeding 98%, affecting at least 250,000 investors.

On May 15, Investment Express, under the Southern Financial Media Group, reported that many of the companies facing delisting are involved in financial fraud. For example, Yuandao Communications, which faces forced delisting, inflated its revenue during its IPO period from 2019 to 2021 by fabricating work volume confirmation documents. After listing in 2022, the company continued using the same deceptive practices.

The stock once reached a historical high of RMB 194.97 (approximately NT$975), but its price has now fallen to around RMB 5, representing a cumulative decline of over 97%. Tens of thousands of investors are severely trapped in their positions.

The report also cited cases where delisting stemmed from drastic reversals in earnings forecasts. Huarong, which has already entered the delisting consolidation phase, was once known as the 'limit-up king' in the A-share market, hitting the daily trading limit 33 times within a year, and still closed at the limit-up on the day it issued its earnings revision announcement.

However, on April 21, 2026, the company suddenly revised its net profit forecast from an expected profit of RMB 6.5 to 8 million to a loss of RMB 1.2 to 1.8 million. As a result, the stock price shifted from limit-up to limit-down the next trading day. After entering the delisting phase, the share price plummeted from RMB 2.04, hitting a low of RMB 0.35 during trading, a decline of over 90%.

The report stated that this wave of A-share delistings in China affects at least 250,000 investors. Delisting does not equate to exemption from liability. According to securities laws and related judicial interpretations, investors who suffer losses due to false statements may file civil compensation lawsuits. If a company has violated information disclosure rules, the listed company and responsible parties must bear civil liability. As long as the company still has assets, or intermediary institutions such as sponsor institutions and accounting firms bear joint liability, investors may receive compensation. (Edited by Chen Kaiyu / Qiu Guoqiang) 1150617

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