Nov 16 China-based solar equipment maker JA
Solar Holdings Co, faced with delisting in the United
States, said it would consolidate its American Depositary
Shares, a move that normally would boost the value of the stock.
The company said one ADS will represent five ordinary shares
effective Dec. 10. One ADS now represents one ordinary share.
Under Nasdaq rules, securities can be delisted if their
share price remains below $1.00 for 30 trading days in a row.
JA Solar shares closed at 70 cents on Thursday on the New
York Stock Exchange and have fallen about 60 percent in the last
one year. They traded at as much as $26 in 2008.
Rival LDK Solar Co Ltd on Friday received a warning
from the New York Stock Exchange that the company's stock may be
LDK shares closed at 96 cents on Thursday. They are down
more than 70 percent in the last one year.
Shares of Chinese solar companies such as Suntech Power
Holdings Co Ltd, LDK, JA Solar, Trina Solar Ltd
and Yingli Green Energy Holding Co, have plunged in the
last three years due to a global supply glut that has sent
The companies have also been slapped with import duties in
the United States and they may have to pay similar charges in
Suntech, the world's largest panel maker, received a similar
notice in September.