B shares decline after delisting warning
By Staff Reporter |
July 31, 2012, Tuesday
|
Print Edition
Print Edition
FOREIGN currency-denominated B shares tumbled in Shanghai and Shenzhen yesterday after Shenzhen-listed home appliance manufacturer Tsann Kuen (China) Enterprise Co warned it may be delisted.
It sparked concern more companies face delisting.
The Shanghai B Share Index sank 5.64 percent, the lowest level since June 2010. The Shenzhen B Share Index dropped 3.41 percent.
Tsann Kuen slid the daily limit of 10 percent for the sixth straight day and closed at 55 Hong Kong cents (7 US cents) yesterday, its lowest close since May 1999.
Eleven of 54 US dollar-denominated B shares on the Shanghai bourse sank the daily limit of 10 percent yesterday. None closed higher.
The Fujian-based company has been trading below its face value of 1 yuan (15.7 US cents) for 16 straight trading days and is set to trigger the delisting threshold on Friday. It could become the first company to be delisted since new rules were introduced on June 7. According to the Shenzhen Stock Exchange's regulations, the shares could be delisted if they close below the face value in the next five trading days, Tsann Kuen said in an exchange filing last Friday.
The stock will then be suspended from trading and securities authorities will decide whether the delisting procedure will be enacted within 15 trading days.
Both stock exchanges have tightened delisting rules in recent months.
It sparked concern more companies face delisting.
The Shanghai B Share Index sank 5.64 percent, the lowest level since June 2010. The Shenzhen B Share Index dropped 3.41 percent.
Tsann Kuen slid the daily limit of 10 percent for the sixth straight day and closed at 55 Hong Kong cents (7 US cents) yesterday, its lowest close since May 1999.
Eleven of 54 US dollar-denominated B shares on the Shanghai bourse sank the daily limit of 10 percent yesterday. None closed higher.
The Fujian-based company has been trading below its face value of 1 yuan (15.7 US cents) for 16 straight trading days and is set to trigger the delisting threshold on Friday. It could become the first company to be delisted since new rules were introduced on June 7. According to the Shenzhen Stock Exchange's regulations, the shares could be delisted if they close below the face value in the next five trading days, Tsann Kuen said in an exchange filing last Friday.
The stock will then be suspended from trading and securities authorities will decide whether the delisting procedure will be enacted within 15 trading days.
Both stock exchanges have tightened delisting rules in recent months.
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