A hammer! Zhonghong shares become the first "face value delisting" stock in the past 30 years

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A hammer! Zhonghong shares become the first "face value delisting" stock in the past 30 years

2018-11-09 00:25:25 33 ℃

The Shenzhen Stock Exchange issued a notice on the evening of November 8th, stating that the decision to terminate the listing of Zhonghong shares was made. Zhonghong shares became the first company to be forced to terminate its listing because its share price was continuously below par. Zhonghong shares will enter the national SME share transfer system for listing and transfer within 45 trading days after the expiration of the delisting period.

A number of interviewees told China Securities Journal that the delisting of Zhonghong shares is of great significance to the demonstration of A-shares in terms of system construction. Dong Dengxin, director of the Institute of Financial Securities of Wuhan University of Science and Technology, said: "The withdrawal of Zhonghong shares is the result of investors exercising their initiative, discourse power and voting rights. It has opened a new era in which Chinese junk stocks have been voted out of the market by investors. In the future, delisting standards such as face value, market value, and trading volume will play an important role in the future, which will help the A-share market to form a virtuous cycle of survival of the fittest and even big and big."

Public information shows that Founded in 2001 and headquartered in Beijing, Hong has established a comprehensive real estate enterprise integrating the development and operation of core properties such as commercial real estate and cultural tourism real estate. In 2010, Zhonghong shares listed on the *ST Branch. Before the delisting, the stock price was reported at 0.74 yuan/share, with a total market value of 6.209 billion yuan.

Cause Zhonghong shares to trigger delisting conditions, which are directly related to its debt crisis. In December 2017, the debt interest of Zhejiang Xinqi World Film Culture Investment Co., Ltd., a subsidiary of Zhejiang, was exposed. In December 2017, Dagong International lowered the main rating of Zhonghong. As of October 30, the total amount of accumulated overdue debts of Zhonghong and its subsidiaries was 7.816 billion yuan, all of which were all types of loans. At the same time, the company lost nearly 1.9 billion yuan in the first three quarters. In addition, Zhonghong Zhuoye, the controlling shareholder of Zhonghong Co., has been frozen by the judicial and judicial waiting since the beginning of this year.

It is worth mentioning that “high-transfer” has been carried out many times to make Zhonghong’s shares “self-sufficient.” According to statistics, since the listing of the backdoor, Zhonghong shares have carried out four transfers, expanding the total share capital from 560 million shares to 8.139 billion shares, ranking the 92nd in the two cities, and its share capital is 6.48 times that of Guizhou Moutai.