China wants to delist its own companies: the bad ones

  • 📰 TheEconomist
  • ⏱ Reading Time:
  • 23 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 92%

Business News News

Business Business Latest News,Business Business Headlines

Regulators in China have made it easier to strip lousy firms of their listing status. It is the latest in an array of reforms aimed at modernising the stockmarket

Chinese companies on the stockmarket, Gangtai Holding, a jewellery-to-property conglomerate, flaunts its listing. It displays its ticker number, 600687, prominently on its website and in its ads. But not for much longer. On January 7th Gangtai began a 30-day period almost certain to end with its ejection from the Shanghai Stock Exchange. It is one of a growing number of Chinese companies to face delisting at home.

Delistings are a staple of healthy stock exchanges, a mechanism for clearing out the dross. In America a few dozen companies are typically forced off its exchanges every year, often because of low market values. In the early 2000s, after the dotcom bust, annual delistings climbed to nearly 400. China, by contrast, has averaged seven delistings a year over the past decade, despite having more than 4,000 listed companies, nearly as many as America.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

They want a safer environment.. very bullish for $baba

Full transparency and fairness on 'de-listing' process as minimal requirement. Achievable ? Will see...

too much luckin coffee

I want whatever route will keep orange 🍊 dude from running again for PREZ, NO PENSION for life,NO Secret Service for life ......1) Impeachment with conviction OR 2) orange Resigning OR 3) 25th admendment. TAXPAYERS should NOT be paying for lifetime benefits for 45! PRISON!

thanks

huh

I’m guessing ‘lousy’ = ‘out of favour with Xi Jinping’.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in BUSİNESS

Business Business Latest News, Business Business Headlines