This photo taken on Feb. 17, 2023 shows a view of the China Securities Regulatory Commission (CSRC) in Beijing, capital of China. (Photo/Xinhua)

Beijing - China's top securities regulator has addressed recent online rumors about delisting of some companies, urging investors to rely on authoritative sources for information and to avoid being misled by incomplete or inaccurate reports.

"Delisting is subject to strict standards," said Wang Li, spokesperson for the China Securities Regulatory Commission (CSRC), emphasizing that the CSRC will steadily advance delisting regulations in accordance with the law and ensure stable market operation.

The remarks followed recent online reports claiming that 36 companies are set to be delisted, 66 will receive delisting risk warnings, and several others will face risk alerts, sparking confusion in China's capital market.

Wang explained that the decision on whether to delist a company's stock or issue a delisting risk warning is based on a comprehensive assessment of the company's overall situation. He cautioned that focusing solely on regulatory inquiries or performance declines for evaluation is inconsistent with delisting regulations and may mislead investors.

Wang noted that many of the 36 companies reported to face delisting risks are actively addressing or have already mitigated these concerns through measures like operational improvements, mergers and acquisitions, or bankruptcy restructuring.

As for the 66 companies potentially facing delisting risk warnings after the release of their 2024 annual reports, Wang stressed that these companies still have a year to improve operations, enhance performance, and resolve delisting risks.

As part of efforts to boost the high-quality development of the capital market, China released a guideline on strict implementation of delisting regulation in April this year, focusing on improving the overall quality of listed companies, expanding diverse exit channels and strengthening investor protection.