SHANGHAI Dec 25 China's Shenzhen Stock Exchange
will delist two loss-making companies, the first delistings
under tighter rules for underperforming firms aimed at boosting
confidence in the sluggish equities market.
Software producer Powerise Information Technology Co
and real estate firm Jiangsu Chinese Online
Logistics Co will be delisted next week in
accordance with the new rules announced in June, the exchange
said in a statement late on Monday.
Trading in Powerise has been suspended since May 2007 after
the firm made three consecutive losses. Jiangsu Chinese Online
has been suspended since May 2006 for the same reason.
According to the new rules, companies which post three
consecutive years of losses will be delisted unless they pass a
review of their restructuring plans.
The Shenzhen exchange said it had rejected the restructuring
plans from Powerise and Jiangsu Chinese Online.
China has in recent years tightened performance standards
for listed companies as part of sweeping reforms intended to
improve the health of its stock markets.
(Reporting by Lu Jianxin and Kazunori Takada; Editing by