Chaori Solar says Shenzhen share listing to be suspended
HONG KONG May 22 (Reuters) - Shanghai Chaori Solar , the firm that roiled global markets in March with China's first domestic bond default, said the listing of its shares will be suspended on May 28 following a third consecutive year of losses.
Under China's securities law, a listed firm reporting three straight years of losses has the listing of its shares suspended which means investors are not able to trade the shares.
A return to profit is a condition for the listing to be restored but for Chaori Solar, a solar equipment producer, a turnaround this year is highly unlikely. It warned in late April it faced liquidity problems and would still have difficulties repaying its debt.
The company recorded a default on March 7, when it missed an interest payment on a bond.
It reported a net loss of 107.3 million yuan ($17.21 million) in first quarter following a 2013 net loss of 1.45 billion yuan. It had overdue loans totalling nearly 3 billion yuan at the end of last year.
The company's Chaori-11 bond, which has been suspended since July 2013, will be delisted from the Shenzhen bourse on May 30, it said in a filing to the exchange. ($1 = 6.2350 Chinese Yuan) (Reporting by Meg Shen and Twinnie Siu; Editing by Erica Billingham and Jane Merriman)
- Tweet this
- Share this
- Digg this
The latest Reuters poll of 20 economists taken over the past week shows Asia's third-largest economy will likely grow 5.5 percent this fiscal year and 6.4 percent the next, slightly better than 5.3 percent and 6.3 percent expected in the July poll. Full Article
Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw” Full Article