Investors are being cautioned against blindly following speculative trends in stocks facing delisting risks. On February 10, the Shenzhen Stock Exchange issued a risk warning regarding the trading of *ST Lifang shares. Despite this, when trading resumed on February 11, the stock's price continued to rise, increasing by over 5% that day. In fact, since January 20, the share price of *ST Lifang has accumulated an increase of more than 300%.

This significant price surge occurs against a backdrop where the company faces a high risk of mandatory delisting due to serious legal violations and despite repeated regulatory warnings. The price movement is fundamentally detached from the company's financial fundamentals, representing an irrational speculative frenzy. There are no free lunches in the capital markets; speculative activities that ignore delisting red lines and regulatory warnings will ultimately face due consequences.

In recent years, with the deepening reform of delisting mechanisms, the principle of delisting non-compliant companies has become a market consensus. Financial fraud severely damages the credibility of information disclosure systems and undermines market integrity and fairness. Mandatory delisting for major violations is an inviolable "red line," and regulators maintain a firm stance against such "problem companies," committed to removing them from the market in accordance with laws and regulations. *ST Lifang received an "Advance Notice of Administrative Penalty and Market Ban" from the Anhui Securities Regulatory Bureau last November, indicating the company is suspected of meeting the criteria for mandatory delisting due to significant violations. Some investors participating in the speculation of delisting-risk stocks may harbor the侥幸心理 that "delisting may not actually happen," but this is essentially a bet on a low-probability event where the risk and reward are completely disproportionate, with the vast majority likely facing losses.

In response to the abnormal speculation surrounding *ST Lifang, regulators have acted promptly. On January 20, the Shenzhen Stock Exchange stated in an inquiry letter that information released by *ST Lifang's actual controller, Gu Mutang, through non-official information disclosure channels was suspected of being untrue, inaccurate, incomplete, and misleading. Deeming the market impact severe, the exchange initiated disciplinary proceedings. On January 23, the Anhui Securities Regulatory Bureau also stated it would handle the matter according to law. On the evening of February 10, the Shenzhen Stock Exchange reiterated that it had taken self-regulatory measures, including suspending trading for investors involved in abnormal transactions, using a "visible hand" to curb speculative fervor. These series of actions are necessary measures to maintain normal trading order in the capital markets and serve as advance protection and risk warnings for the broader investing public.

Objectively, the speculation in *ST Lifang is a short-term game dominated by hot money and followed by retail investors, continuing the bad habit within the market of "speculating on poor-quality and delisting stocks." To fundamentally curb such behavior, purify the market ecosystem, and promote the healthy and stable development of the capital markets, regulators need to continue efforts on multiple fronts.

First, further improve the monitoring system for abnormal transactions. Fully utilize technological means to accurately identify malicious speculation and price manipulation by hot money, achieving "early detection, early warning, and early intervention." Simultaneously, increase the investigation and punishment of related illegal activities, raise the cost of violation, and strengthen regulatory deterrence.

Second, optimize the implementation process of the delisting system. While "delisting non-compliant companies" is a consensus, the *ST Lifang incident reveals a lag in the transmission of delisting risks. There is a period between the advance notice of an administrative penalty and the final ruling, which can be exploited by hot money to speculate on a "pre-delisting rally," preventing the warning and deterrent effect of the delisting system from being fully realized. Further optimization of the delisting process and enhancing the targeting and effectiveness of risk prompts are needed to make the market truly respect delisting risks.

Third,常态化 advance investor education. Integrate warnings about delisting risks and the promotion of rational and value investing concepts into daily regulatory work. Guide investors to establish correct investment philosophies and enhance their risk awareness and prevention capabilities, creating a clear chain from "regulatory warning" to "risk recognition" to "rational decision-making" to help investors avoid the trap of speculating on poor-quality and delisting stocks.

Historical experience has repeatedly proven that speculation detached from fundamentals is doomed to fail. As the delisting mechanism becomes more robust and regulatory oversight intensifies, investors should remain clear-headed, stay away from irrational speculation, and collectively safeguard the foundation for the healthy development of the capital markets.