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Number of Money-Losing Listed Companies Rising, Say Reports
Mid-year reports show that out of 1,152 companies listed on the stock exchanges in Shanghai and Shenzhen 102 are losing money.
Out of the 102 money-losing companies, 39 are newly added, including Konca, a leading Chinese color television maker based in Shenzhen, south China's Guangdong Province.
According to the reports, the share prices for a group of blue chips also keep falling.
The listed companies are caught by a craze for incrementing shares and for agent financial services. By late August, more than 130 listed companies had applied for permits to issue more shares, and the anticipated volume of added shares will exceed 100 billion yuan (about 12.05 billion U.S. dollars), a record high.
One fifth of the listed companies plan to issue more shares with the upper limits exceeding their respective volumes of traded shares, while at least 10 companies intend to pool one billion yuan (about 121 million U.S. dollars) each from the public.
About 145 listed companies have entrusted other agent firms to help manage the funds they raised from the bourses, which deviates from the investment destinations the listed companies claim in their investment-inviting bids.
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