Stock market regulators in Shenzhen have delisted the first company under new rules that came into force at the start of the year, South China Morning Post said. Under the new rules, companies that post net losses for three consecutive years are suspended from trading and are delisted if they fail to turn a profit in six months. Hainanbased Nanyang Shipping was suspended last year for posting losses between 1998 and 2000, but it was given a one-year grace period. The company’s results for last year revealed a loss of Yn43.3m and delisting followed.
Analysis of the company’s results showed that it effectively stopped trading in 1999 after former president Shen Shiyuan embezzled company assets worth Yn23m. It suffered another blow when Shen’s successor Chen Tao embezzled a further Yn20m.
You must log in to post a comment.