A-Shares Bear Casualty: First Delisting for Trading Below 1 Yuan Imminent

If a stock trades below par value for 20 consecutive days, it will be delisted from the Shenzhen Stock Exchange. Zhonghong (000979) has traded below 1 yuan for 19 days cannot climb back above 1 yuan per share because of the daily limit of 10 percent.
21st Century: A股首例:中弘股份“脱仙”无望退市几成定局
If there is no accident, Zhonghong shares (000979.SZ) will be a big probability in the near future to become the first A-share listed company that has been delisted because its share price continues to be lower than 1 yuan/share (ie “penny stock”). the company.

On October 17th, Zhonghong shares, which was once hoped to be "protected by the shell", were suddenly seen to collapse at the end of the day and closed at 0.82 yuan per share. According to statistics, this is the 19th consecutive trading day of Zhonghong’s share price lasting below 1 yuan/share.

At the same time, this also means that even if on October 18, Zhonghong shares closed limit up, its stock price would still be only 0.9 yuan/share, which is still a “penny stock”. According to the relevant regulations of the Shenzhen Stock Exchange, Zhonghong shares may be terminated.

...According to the relevant regulations of the Shenzhen Stock Exchange, the closing price of the listed company's stock for 20 consecutive trading days (excluding the trading day in which the company's stock is suspended throughout the day) is lower than the stock's face value, and the Shenzhen Stock Exchange terminates the company's stock listing and trading. In August and September, Zhonghong’s share price also lasted below the face value of 1 yuan, but the closing price of the 16th trading day briefly rebounded to 1 yuan/share, thus temporarily defusing the risk of delisting.

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