HONG KONG May 22 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)