After the new "Nine Measures" were released, the performance of the ST (Special Treatment) sector has been deteriorating, with the ST sector index having fallen by 32% since the beginning of the year as of April 30th. According to the rules published by the Shanghai and Shenzhen stock exchanges, companies that have not distributed dividends for many years or have a low dividend ratio will be included in the "Special Treatment" (ST).

Taking Jilin Expressway as an example, it has not distributed dividends for three consecutive years and has been questioned by the exchange. It could completely ignore the inquiry, continue not to distribute dividends on the grounds of tight funds, but it risks being labeled as ST. Although it will not be directly delisted after being labeled as ST, it will have a serious impact on the company's reputation, stock liquidity, and stock price. Therefore, it immediately changed its resolution and stated that it would distribute dividends this year.

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At present, only 55 companies on the main boards of the Shanghai and Shenzhen stock markets meet the new ST rules, and 11 companies on the Science and Technology Innovation Board and the Growth Enterprise Market meet the new ST rules. For the 66 companies that are at risk of being labeled as ST, if they do not rectify within 8 months, they will inevitably be subject to ST.

As investors, we must stay away from these stocks that may be labeled as ST in the future, as well as those that may be delisted in the future, to avoid huge investment losses.

On April 30th, the Shenzhen and Shanghai stock exchanges issued the "Stock Issuance and Listing Review Rules", and the main points of the delisting revision are as follows:

Firstly, it adds the situation of delisting for continuous fraud over many years. For one year, it is "2 billion yuan and the proportion is 30%"; for two consecutive years, it is "a total of 3 billion yuan and the proportion is 20%"; and for three consecutive years or more, if it is determined to be fraudulent, it will be delisted.

This means that companies suspected of financial fraud in recent years, once proven to have been fraudulent for three consecutive years in the past, will be immediately delisted. Companies that have been fraudulent since this year, once discovered, may be delisted if the amount reaches a certain figure. What kind of company is most likely to commit fraud? It is the company with unstable performance. If the company loses money this year, makes a profit next year, and loses money the following year, it is possible that the company may commit performance fraud in order to maintain its listing qualification, and small and medium investors should stay away.

Secondly, companies with large amounts of capital occupied by controlling shareholders and not rectified will be delisted. Companies that have been issued "incomprehensible financial statements" or "unable to express opinions" and other similar evaluations by the audit department for two consecutive years should be avoided by investors, because if they are issued such opinions again in the third year, they will be directly delisted. Companies with conflicts among shareholders and disputes over equity will also be delisted.

Thirdly, if the company's total profit, net profit, and non-recurring net profit are all negative, and the operating income is less than 3 billion yuan, such companies will be delisted. This indicates that even if companies with poor performance have not reached this figure now, they are very likely to be delisted in the future for touching this red line.From this, we can see that many companies, although not currently meeting the delisting criteria, will be delisted if they are found to be falsifying or if their performance continues to decline, triggering the delisting conditions. A wise man does not stand under a dangerous wall; staying away from companies that may be involved in falsification and those that may continue to suffer performance losses is the way to ensure investment safety.

As ordinary investors, it is difficult to distinguish which companies are involved in financial fraud or which companies will experience consecutive performance losses, so it is impossible to avoid stepping on landmines. Therefore, I suggest that ordinary investors adopt the following three major strategies to stay away from these potential dangerous stocks:

1. Invest only in industry-leading companies

Industry-leading companies, as the best companies in the industry, generally have relatively stable performance because they occupy an advantageous position in the industry. The probability of sudden falsification or huge performance losses is extremely low. For example, Sany Heavy Industry in the machinery industry, Conch Cement in the cement industry, and Baosteel in the steel industry. These companies are industry leaders, with a clear advantage in risk resistance compared to other companies in the industry, and their performance is relatively stable.

2. Establish a stock investment portfolio

To prevent the risk of being overly concentrated in a position and encountering the risk of a black swan event, we must establish a stock portfolio and hold multiple stocks to diversify risks and stabilize our investment performance. I personally believe that an ordinary investor's portfolio should have at least 8 stocks.

3. Invest in funds

Investors with weaker investment skills or beginners should invest in funds. A fund is actually an investment portfolio of a basket of stocks, which can effectively diversify risks.

In summary, the release of the new nine regulations has made poor-performing companies and junk companies increasingly worthless. Under the significant changes in the delisting system, good money drives out bad money, and the long-term bull market of excellent companies will inevitably be the long-term investment trend of the A-share market in the future.