Nov 09, 2018 (China Knowledge) - The Shenzhen stock exchange (SZSE) has announced that the Chinese property developer, Zhonghong Holding Co., Ltd <000979:SZE> will be delisted from the stock exchange, wef 16 November, at the end of the delisting period of 30 trading days.
Zhonghong will be the first company that has been forcefully stripped off of its listing due to its consistent low trading of its shares price below par value, said the statement issued by Shenzhen stock exchange.
The Chinese government has been actively pushing for reforms and ‘clean up’ in its corporate sector as it seeks to improve the quality of companies listed on both Shanghai and Shenzhen stock exchanges.
In order to beef up corporate governance in China, the securities regulator amended rules on the criteria for delisting earlier in July.
Overdue loans have been piling up for the company, as government aims to control debts in the property sector of China for past two years. In its regulatory filing disclosed in April earlier this year, Zhonghong has defaulted on more than RMB 1.1 billion borrowings, double of that in just five weeks, totalling to RMB 2.27 billion.
As of 22nd October, Zhonghong and its subsidiaries have overdue debts of RMB 7.77 billion. Its shares were halted after trading on 18th October at RMB 0.740 apiece.
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