| |
 |
PT firms urged for better disclosure
|
Yang Yunfei
THE Shenzhen Stock Exchange said on Tuesday that firms under special trading curbs known as particular transfer (PT) should continue to disclose enough information during their grace periods.
A notice issued by the exchange requires that all PT firms listed in Shenzhen should submit their restructuring plans to the exchange before posting statements to notify investors of their overhaul efforts.
These severe loss-making firms, labelled particular transfer for racking up losses for more than three consecutive years, are also required to make an announcement of possible deficit in advance, and disclose the risks of investment in their companies, if they anticipate any further losses in their interim or annual reports.
The move is aimed at giving more information to investors to remind them of the potential risks of delisting.
PT firms, the most speculative and volative stocks in the market, are traded only on Fridays and have a five per cent upper limit but no floor limit.
Under delisting regulations issued in February, PT companies are allowed to apply for a six to twelve month grace period in which to return to profit, failing which they face delisting.
China carried out its first ever dilisting in April by throwing loss-making Shanghai Narcissus Electric Appliances off the Shanghai Stock Exchange.
Guangdong Kingman Group Co is slated to become the second Chinese company to be kicked off the decade-old stock markets after the eel farming firm's plea for a grace period was rejected by the Shenzhen Stock Exchange last week.
|
|
|
|
