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More Listed Firms Given Grace Periods
Beijing Travel Bus Co. Ltd. and Baihuacun Co. Ltd. of Xinjiang, two companies listed on the Shanghai Stock Exchange (SSE) now losing money, were each given a grace period of six months and one year respectively before their stocks are delisted.
The SSE explained in a statement released Tuesday that it accepted the two companies' applications asking for grace periods on June 14 and decided to grant the two companies the grace periods they demanded in accordance with the relevant regulations worked out by China Securities Supervisory Commission (CSSC) and SSE.
The grace periods began on April 30, this year.
The SSE reiterated in the announcement that within the given grace periods, all members of the two companies, their boards of directors are supposed to continue to carry out their respective duties and disclose information to investors in accordance with the requirements of CSSC and SSE.
The SSE also warned investors of hidden investment risks that may arise due to granting the two listed companies grace periods because it does not necessarily guarantee any profits will be made by the middle term of the year. If the two companies come up with losses by the middle term of this year, they would be stopped from listing at the bourse, according to relevant regulations.
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