700 Listed Firms in China Seek To Suspend Trading

SHANGHAI, CHINA – At least 700 listed firms in China have filed a request to suspend trading of their shares in what experts claimed is an attempt to shield their companies from the stock market falldown.

Reuters reported that the number of listed firms seeking to suspend or extend trading halts have gone up since the Chinese stock market reached its peak on 12 June this year.

The total number of Chinese-listed firms that are seeking to suspend trading in their shares is equal to around a quarter of the total firms listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange.

Listed firms scramble to halt trading as the country’s stock market crashed 30% since a 12 June peak. Reuters reported that the 702 firms that requested trading halts cited restructuring, planned share placements or pending release of significant matter as their reasons for the request.

One analyst, however, said that while listed-firms cited other reasons for their decision to halt trading, preventing further ralls in their share prices cannot be ruled out. – BusinessNewsAsia.com