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Wednesday, April 11, 2001, updated at 14:01(GMT+8) | ||||||||||||||
Business | ||||||||||||||
Shanghai Bourse Warns Investors about Dangerous StocksThe Shanghai Stock Exchange sent a special warning to investors Tuesday, about the possible cancellation of five PT (Particular Treatment) companies listed on the bourse.The investors face risks when trading stocks of the five companies, PT Shuanglu, PT Nongshangshe, PT Shuixian, PT Wangdian and PT Hongguang, since the companies might be removed from the market, unless they meet the requirements of the government on time. A listed firm will be made a ST (Special Treatment) case, when it has encountered losses on an annual basis. A listed company that has run at a loss three years in succession will be given the status as "PT". A "PT" company can be promoted to a "ST" company, when it turns profitable. A "ST" firm may have the title removed when it stops losing money. On February 24, 2001, the China Securities Regulatory Commission (CSRC) issued rules which demanded a temporary stop to trading of stocks of companies who have been running at a loss for three years running, and the termination of trading of shares of companies that have been in the red for the fourth successive year. According to the new rules, a listed company may have its stock removed from the trading floor for ever, if it fails to publish its yearly report by April 30; or its application for a tolerance period is turned down by the CSRC; or it fails to hand over the application for a tolerance period 45 days after the issuance of its annual report; or it reports losses in the mid-year report, after the tolerance period.
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