What is the frequent renaming of listed companies?

People often use "time-honored brands" to describe the history, reputation, status, influence and culture of an enterprise. If an enterprise is named "time-honored", it will feel very honored, cherish this honor very much, and make extra efforts to make the "time-honored" louder and louder. Under normal circumstances, enterprises will not change their names easily, especially those that already have a certain status and influence, and they will not change their names casually. However, in recent years, changing the name of the capital market has become a common phenomenon.

It is reported that more than 200 companies have changed their abbreviations since last year alone. Shenzhou Joy recently announced that the short name of the company's securities will be changed from "Shenzhou Joy" to "Shunchang". Why did you change it to such a strange name? The original business scope of the company includes "consulting, human capital, finance and insurance, intangible assets". Because of the consultation, it was changed to "running smoothly". The changed name made people feel uncomfortable and awkward, but in order to attract attention, the company changed it regardless.

This reminds me of another case in which the company changed its name: Duolun changed its name to "Parker" in order to get the "light" of P2P. At that time, Duolun shares had nothing to do with P2P. In the face of investors' doubts, the company expressed its intention to do P2P business. After the name change, the new name did not bring much benefit to the enterprise except for two daily limit due to hype when it was just renamed. On the contrary, it suffered losses for two consecutive years, and the original actual controller was severely punished by the CSRC for being banned from entering the securities market for life because of his irregular behavior. In July last year, in order to get rid of the bad influence caused by improper renaming, the company changed from "Pippi" to rock, but whether such renaming can get rid of the bad influence of the company, I am afraid only God knows.

Name is the intangible asset of an enterprise. The longer you use it, the longer you do it, the more culture you inject, and the higher the gold content of the name. Unless absolutely necessary, enterprises should not change their names easily. Once renamed, it is easy to alienate the relationship between enterprises, consumers and investors, easily damage the value of intangible assets and devalue the goodwill of enterprises. A truly mature enterprise will cherish its name very much and even regard it as priceless. This is why some enterprises still want to keep their original names after being acquired by other enterprises.

Why do some companies try their best to change their names as a means to attract attention? It can almost be asserted that no enterprise that keeps changing its name is really doing well. Only companies that do not do well will change their names. Those enterprises that have done well will not make a decision to change their names casually, even if their business scope has been greatly expanded and their business content has changed greatly. They can choose to register a new enterprise and put new business into the new enterprise, but they will not change the name that already has a high status, great influence and great intangible asset value.

Judging from the situation of many renamed listed companies, most of them are newly established companies in recent years, or companies that have not done well for a long time, have a bad reputation and have been punished many times. But even if you change your name, what's the point of changing it? If business operators, investors and actual controllers are determined to do a good job in the enterprise, why care about changing the name? Taking changing the name as the goal of "transshipment" of enterprises is not much different from hitting the Universiade, which only shows that enterprises have no confidence and confidence to do well.

In order to regulate the renaming behavior of listed companies, the Shanghai Stock Exchange and Shenzhen Stock Exchange have successively issued the Business Guidelines for the Change of Securities Abbreviations of Listed Companies and the Memorandum on the Change of Company Name. In the future, the renaming of listed companies needs to be carried out in accordance with the norms. What needs to be guarded against is that some companies request to change their enterprise names in the name of entering certain fields or industries, but in the actual operation process, they are engaged in businesses unrelated to the name change. For such listed companies, stricter supervision should be given in renaming. Even if they change their names, as long as they don't follow the business development promised at the time of change, they should be ordered to change back to remind investors not to be fooled by these companies and not to be deceived by their name change.

Source: Beijing Youth Daily