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Nasdaq Listed Chinese Portal Trading Halted
The Nasdaq Stock Market said trading in Netease.com Inc (NTESE) was halted at 8:52 am EDT (12:52 GMT) and requested additional information from the company.
In a press release on Tuesday, the exchange said trading will stay halted until the company has fully satisfied Nasdaq's request for more information.
On Friday, Netease completed an internal audit and restated its 2000 net loss at US$20.4 million, 18 per cent higher than previously reported. That investigation had delayed its filing of an annual report, leading the Nasdaq exchange to threaten the company with delisting. The firm's chief executive and chief operating officers have since resigned.
On Monday's Internet Weekly, China's Sinohome Internet Technology Co said it was in talks with Netease.com with the aim of taking a controlling stake in the troubled Chinese-language portal. Netease and its bankers, Goldman Sachs, have been pursuing several possible partners as its internal problems mount and competition intensifies among China's loss-making Internet portals.
Netease Applies to NASDAQ for Delisting Hearing
The NASDAQ-listed Chinese portal Netease.com may not be delisted from the US stock market Friday, but the consequences of its close call will have a profound impact on the whole Internet industry.
"It is quite certain that my company will not be delisted on Saturday, as we have submitted an appeal to NASDAQ for a hearing on the delay of Netease's annual report," said an executive Thursday.
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