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|Saturday, April 28, 2001, updated at 13:51(GMT+8)|
PT Narcissus Shareholders Sued SSE and CSRCNine shareholders of PT Narcissus Electric Appliances on April 25 lodged a complaint against Shanghai Stock Exchange (SSE) and China Security Regulatory Commission (CSRC) for PT Narcissus investment losses brought by their self-contradictory "Regulations" at the First Intermediate People's Court of Shanghai.
As is reported by International Financial Daily, the nine minor shareholders had bought tens of thousands of PT Narcissus shares before the issue of "Implementing Procedure on Listing Suspension and Termination of Listed Companies Operating at Loss" (hereinafter referred to as Procedures) by CSRC since February 22.
Pursuant to the provision of Article 10.1.11 of "Regulations on Stock Listing in Shanghai Stock Exchange"(2000 version) (hereinafter referred to as Regulations) taking into effect since May 1, 2000, a PT company"may apply to restore listing status when it achieves surplus within either of three years after being suspected of listing, and SSE shall put forward its opinion within three working days and restore the listing status of the company in question upon the approval of the CRSC". It is reported that the nine shareholders had pinned their hopes on the possibility of getting a surplus from their PT Narcissus investment "within either of three years after being suspected of listing"as was told by Regulations, thus keeping in hand all their PT Narcissus shares they had bought. Nevertheless, the suddenly promulgated Procedures pushed immediately all PT companies onto the brink of delisting instead of giving a grace period of three years, thus a prompt and sharp fall of PT stock prices, which had led to great losses and unpredictable daminification of investment of the nine shareholders.
Of the nine shareholders, two are retired, one is a laid-off worker, five are still under employment and the remaining one is a 70-year-old lady. Being medium and minor investors unable to bear the precipitate policy and market risks, they finally decided to take judicial action to safeguard their own legal interests.
On Delisting of Money-losing Listed Companies: CSRC OfficialsWhen asked about that whether the delisting of PT Narcissus Electric Appliances Co., Ltd. (SSE: 600625) marks the milestone in the advance of China's securities market toward standardized operation, Zhou admitted that the delisting of deficit-making listed companies is a significant event in the history of Chinese capital market.
"This is done to strengthen the regulations to the securities market, to further protect the interests of the minor shareholders, and to restrict the listed companies," said Zhou Xiaochuan, chairman of the China Securities Regulatory Commission (CSRC).
By PD Online staff member Deng Gang
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