Suspended Hontex eager to resume trading amid possible delisting

The Hong Kong Stock Exchange is seeking to delist Hontex International Holdings, but the troubled firm is fighting to remain listed and have trading resume on its suspended shares.

The sport fabric maker received a letter dated November 7 from the stock exchange saying the exchange's listing division intends to recommend that the listing committee delist the company, Hontex announced last night.

"The company intends to maintain its listing status and has been working with its advisers on a proposal to resume trading of its shares. The company will provide a submission to the stock exchange in due course," Hontex said.

"If Hontex wants to retain its listing and resume trading, it has to get up to date with all its accounts and restore its free float. It's virtually the same as re-applying for an IPO. It has to remarket its shares. Hontex has not published any accounts since listing in 2009. That is a serious breach of listing rules," said corporate governance activist David Webb.

To remain listed, a company must maintain a minimum public float of 25 per cent. Only 0.4 per cent of Hontex's shares remains in the public float, according to Webb's website.

Hontex was listed on December 24, 2009 but the Securities and Futures Commission (SFC) suspended the stock in March 2010 after just 64 days of trading.