Speculation that Beijing will drastically overhaul the nation's slumbering hard-currency B-share market has reached fever pitch as the plummeting price of one of the companies on the board sends the firm to the brink of delisting.
Fujian-based electronics manufacturer Tsann Kuen (China) Enterprise has become a lightning rod for B-share investor anger because it is in line to become the first mainland-listed firm to fall victim to a revised delisting rule.
The China Securities Regulatory Commission (CSRC) tightened the listing rules for the B-share markets in Shanghai and Shenzhen earlier this year, announcing that companies whose share prices trade below one yuan for 20 consecutive days would be delisted.
As of Wednesday last week, Tsann Kuen's B shares had traded below the equivalent of one yuan for 18 straight sessions before the company announced it would pursue a bailout plan, without elaborating.
Analysts warn that if Tsann Kuen were delisted, it could open the floodgates for more expulsions.
Tsann Kuen had enjoyed a record of sustained profits but its shares became locked in a death spiral after the company warned investors first-half losses would range from 18 million to 23 million yuan (HK$28.2 million).