2 more Chinese developers join soon-to-be-delisted queue as persistent weakness hobbles housing market

Yango Group and Sundy Land have been notified by the Shenzhen and Shanghai exchanges that they face delisting after their shares fell below the 1 yuan par value

Delistings in China’s stock markets have increased, with 46 companies expelled last year, the most on record, according to BOC International

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Poorly performing Chinese property stocks face the prospect of being expelled from the nation’s stock exchanges. Photo: Xinhua

Published: 1:14pm, 14 Jun 2023Updated: 3:25pm, 14 Jun 2023

Two more mainland Chinese property developers are set to be delisted from onshore stock exchanges, as the number of industry peers facing expulsion grows longer amid renewed weakness in the nation’s housing market.

Yango Group said in a filing on Wednesday that the Shenzhen bourse plans to terminate trading in its shares after the Fujian province-based company’s shares traded below 1 yuan (US$0.14) for 20 consecutive days up to June 9. Zhejiang province-based Sundy Land Investment said in a separate statement that the Shanghai exchange had notified the company of its preliminary delisting decision for the same reason.

Yango’s last close was 0.37 yuan on Friday, while Sundy finished at 0.41 yuan on Tuesday.

The final decisions on the delistings are still pending as the two companies can appeal against the exchanges’ rulings, according to their statements.

Property stocks are among the worst performers on the Shanghai Stock Exchange’s benchmark Shanghai Composite Index. Photo: Reuters

The delisting of developers has increased recently amid selling pressure that has sent their share prices plunging to below the 1 yuan par value threshold set by the exchanges.

On June 6, Sichuan Languang Development was kicked out of the Shanghai exchange, becoming the first real estate company to be delisted for trading below the par value. Apart from Yango and Sundy, five other developers including Zhongtian Financial Group and Tahoe Group, are awaiting the final decisions by the exchanges.