Exploded Land Mine: Shanghai Morn Electric Equipment

From June 14, shares of Shanghai Morn Electric Equipment (002451) were limit down on June 15 after the second largest shareholder defaulted on a loan and was forced to reduce holdings by 6 percent of outstanding shares.

The second largest shareholder will reduce its shareholding by 6% after pledge share default

  Moen Electric (002451) announced on the evening of June 14 that shareholders holding 19.66% of stocks Rongping information, due to the default of some of the previous stock pledge contract, the securities company plans to focus on bidding and bulk trading within six months to Rongping The stocks of information are reduced and disposed of, and the number of shares held by the company less than 2635 million shares, representing no more than 6% of the company’s total share capital. Rongrong Information is currently the company's second largest shareholder.
Background: The Bubble's Revenge: China's A-Share Market is Littered With Pledged Share Land Mines Buried During 2015 Mania

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