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)
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