Quanjude, famed Peking roast duck restaurant chain, halted from trading after 120 per cent stock jump in Shenzhen
- Stock halted in Shenzhen, delaying its New Year bow, following a 120 per cent surge in the final weeks of 2022
- Company to incur a 207 million yuan (US$29.8 million) loss in 2022 before turning around in 2023, Shenwan Hongyuan forecasts
The stock rose by the daily 10 per cent limit in seven of the past two weeks to reach 22.83 yuan on Friday, a level unseen since April 2017. The cumulative rally of 120 per cent made Quanjude one of the hottest stocks, while the broader market lost 3.7 per cent amid worries about new Covid-19 outbreaks across the nation.
The company said it had no important disclosure to explain the stock movement, according to an exchange filing, without saying when the stock will resume trading. The recovery in its dine-in business is still trailing expectations, it added.
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Quanjude, established in 1864, is renowned for its signature dish among foreign tourists in the capital and now operates more than 100 outlets across the country, according to its website. State-owned Beijing Tourism Group controls 44 per cent of the listed company.
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“The topic of 2023 in the market is all about the recovery after the pandemic,” said Fu Jingtao, an analyst at Shanghai-based brokerage Shenwan Hongyuan Group. “The top priority of the government is to restore consumers’ confidence and make them more willing to spend.”
