On the evening of April 12th, ST Shimao (600823.SH) announced that the closing price of its stock had fallen to 0.99 yuan per share, which is below 1 yuan. According to the "Shanghai Stock Exchange Listing Rules" section 9.2.1, subparagraph 1, item 1, if the daily closing price of a listed company's stock remains below 1 yuan for 20 consecutive trading days, it could lead to the termination of trading of the company's stock.
ST Shimao's main business is real estate, but it has recently suffered dismal performance and high debt. According to the 2023 performance brief, the company reported a net loss of 48.2 billion yuan for the year, with accumulated debts of 12.324 billion yuan unpaid on schedule. Additionally, Shimao Group, an indirect controlling shareholder, also fell into a financial crisis, and on April 5, 2024, China Construction Bank (Asia) Corporation Limited filed a winding-up petition against it in the High Court of the Hong Kong Special Administrative Region, involving an amount of approximately 1.5795 billion HKD.
ST Shimao is not alone; as of April 12, there are already 10 listed companies with share prices below 1 yuan, causing market concerns. According to the relevant regulations, the Shanghai and Shenzhen stock exchanges will terminate the listing of a company's stocks after its closing price remains below 1 yuan for 20 consecutive trading days. The Beijing Stock Exchange has even stricter requirements, demanding the termination of listing if the stock's closing price stays below the par value per share for 60 consecutive trading days.
Among these, Xinhai Retreat (002089.SZ) and Delisting Bo (603603.SH) have already entered the delisting consolidation period, with about 40,000 and 20,000 shareholders respectively, facing imminent delisting. On April 11, *ST Xingyuan (000005.SZ) received a "Notice of Termination of Listing," as its stock's closing price had been below 1 yuan for 20 consecutive trading days, leading to a decision by the exchange to terminate its listing; this company has up to 80,000 shareholders.
