China's B shares fall on possible delisting

The possible deslisting of a electronics manufacturer from the Shenzhen Stock Exchange sent foreign-denominated Class B shares plummeting in China Monday over fears that stricter rules for the country’s stock markets might claim other companies as well, The Wall Street Journal reported. Tsann Kuen (China) Enterprise (200512.SHE), which announced earlier in July that it expects to post first half losses of RMB18-23 million (US$2.8-3.6 million), traded below one renminbi (16 cents) for the 16th consecutive day on Monday. Under new rules enacted July 7, a company that trades below one yuan for 20 consecutive days will be transferred to another board. After 30 days on that new board, the company will be officially delisted. The stricter rules for the country’s stock market are designed to eliminate poor performing stocks and improve the functioning of the country’s capital market.