Book-cookers face ban
Beijing plans to draft guidelines to delist companies with fraudulent books and those who have taken part in illegal activities, according to state media.
'The planned delisting rules will also apply to companies whose share capital and shareholding structure no longer comply with requirements stated in the Company Law,' Shanghai Securities News said, without elaborating.
Analysts said Beijing was determined to clean up the securities sector, which would be further opened to foreign investors.
As if to back that, the Shanghai and Shenzhen exchanges yesterday re-issued warnings that companies classified 'particular treatment' as a result of posting losses for three consecutive years would be delisted. They are A-share companies Shanghai Shuanglu Electric Appliance, SAIC Multiple Trading, Shanghai Commercial Real Estate Development Industry and Chengdu Hongguang Industrial.
They also include Shenzhen Zhonghao Group and Shanghai Narcissus Electric Appliances, which have A and B-share listings.
The stock exchanges said companies will also be delisted if they are unable to publish last year's annual results by April 30.