November 8, 2018 / 2:45 PM / in 11 days

Chinese property firm Zhonghong to be delisted by Shenzhen bourse

HONG KONG, Nov 8 (Reuters) - Indebted Chinese commercial property developer Zhonghong Holding Co Ltd will be delisted due to its poor share price performance, the Shenzhen Stock Exchange said on Thursday.

China’s government is trying to clean up the corporate sector by improving the quality of listed companies and in July its securities regulator amended rules on the criteria for delistings to beef up corporate governance.

“Zhonghong will become the first company to be forced to terminate its listing because its share price has been continuously trading below par value,” the Shenzhen exchange said on its website, without specifying the delisting date.

Shares in Zhonghong, which were halted after trading at 0.740 yuan on October 18, will enter a delisting period of 30 trading days from November 16 and will be delisted thereafter.

Zhonghong and its units have overdue debts totalling 7.77 billion yuan ($1.12 billion) as of Oct. 22.

In the third quarter, the company’s results showed it swung to a net loss of 558.5 million yuan, from a net profit of 53.4 million yuan a year earlier.

In October, Zhonghong said China’s Dagong Global Credit Rating had downgraded it to C from CCC. ($1 = 6.9366 Chinese yuan renminbi) (Reporting by Lee Chyen Yee in Singapore and Twinnie Siu in Hong Kong; editing by Alexander Smith)

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