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June 17, 2021

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Debt-hit Suning files for trading halt

Shenzhen-listed Suning filed for a trading halt yesterday, citing a major business announcement to be made in the near future, as debt pressure continues after shares slid by the daily limit of 10 percent on Tuesday.

The Beijing Second Intermediate Court froze 540.2 million of Suning’s shares owned by controlling shareholder Zhang Jindong, or 5.8 percent of the company’s total.

One of its creditors, Guizhou Yingming Yuansheng Investment Co, has filed for legal enforcement, but the share freeze won’t change the actual controlling person or affect operations, Suning added in the stock exchange filing.

Suning has tried to relieve debt pressure since the second half of 2020. In February, it received 14.8 billion yuan (US$2.3 billion) in funding from state-backed investors — a 23 percent stake — to relieve its short-term debt load.

In May, it signed a framework agreement for the establishment of a new retail development fund with Jiangsu Province and Nanjing state-owned assets.

In an effort to ease liquidity pressure, the company also placed its warehousing and logistics assets into a new joint venture with Singapore’s Global Logistic Properties.




 

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