On September 1, 2026, Shenyang Cuihua Jewelry Co., Ltd. (Cuihua Jewelry) announced on August 31 that due to triggering multiple delisting regulations such as the consecutive closure of the total market value for seventeen trading days below 500 million yuan (RMB), the company will be forced to delist. If delisted, over 20,000 shareholders of Cuihua Jewelry will suffer investment losses.
Cuihua Jewelry released multiple notices on August 31, including the “Ninth Risk Warning Notice Regarding the Possible Delisting of Company Stock Due to Market Value” and “Risk Warning Notice Regarding the Expected Inability to Disclose Annual Reports within the Statutory Deadline and the Suspension of Trading of Company Stock with Possible Delisting.”
The “Ninth Risk Warning Notice Regarding the Possible Delisting of Company Stock Due to Market Value” stated, “As of August 28, 2026, the closing total market value of Shenyang Cuihua Jewelry Co., Ltd. stock has been below 500 million yuan for seventeen consecutive trading days.” According to relevant listing regulations for mainboard listed companies issuing A-shares, if the closing total market value of the stock remains below 500 million yuan for twenty consecutive trading days, the Shenzhen Stock Exchange will terminate the trading of its stock, constituting a mandatory delisting.
The notice also mentioned that due to the company’s expected inability to disclose the 2025 annual report within two months from the implementation date of the delisting risk warning (before September 6, 2026), it will “trigger a normative type of delisting, and the Shenzhen Stock Exchange will decide to terminate the trading of its stock.”
The notice stated, “Some of the financial information disclosed by the company is suspected of false recording, which may involve significant illegal delisting situations. If the subsequent administrative penalties imposed by the China Securities Regulatory Commission determine facts that trigger significant illegal delisting situations as stipulated in the Listing Rules, the company’s stock will be subject to significant illegal delisting.”
The announcement indicated that Cuihua Jewelry has triggered multiple mandatory delisting regulations.
According to a report from the Daily Economic News, even if Cuihua Jewelry’s stock (*ST Cuihua) hits the daily limit up for the next four trading days based on the current stock price, the company’s market value will not be able to return to 500 million yuan. This implies that Cuihua Jewelry has effectively locked in its delisting ahead of time.
As Cuihua Jewelry faces delisting, the company also has several instances of financial institution loans overdue and in default, with its main bank accounts frozen by the court.
According to the “Announcement on the Addition of Overdue Borrowings by the Company” released on the same day, “As of the disclosure date of this announcement, Shenyang Cuihua has 2 new overdue borrowings with financial institutions such as banks, with an unpaid principal amount of 91.00 million yuan. As of the disclosure date of this announcement, the accumulated overdue principal amount of the company and its subsidiaries is 107,159.91 million yuan.”
In accordance with the PRC authorities’ “Regulations on the Delisting of Listed Company Stocks,” after delisting, shareholders who have purchased the company’s stock can still trade them, and during the delisting consolidation period (typically 15 trading days), they can be traded on the mainboard. However, if they cannot be sold, the stocks will be transferred to the “New Third Board” (National Equities Exchange and Quotations delisted board) within 45 trading days after delisting.
The industry generally believes that trading liquidity is extremely poor on the “New Third Board.” In the vast majority of cases, once shares are delisted and transferred to the “New Third Board,” they are extremely difficult to sell and realize; from an investment value perspective, the book value of the vast majority of delisted stocks indeed tends to approach zero. Moreover, on the “New Third Board,” the stocks can only be transferred once, three times, or five times per week.
Public data indicates that as of August 10, 2026, the total number of A-share shareholders of *ST Cuihua was 21,346.
Public data shows that Cuihua Jewelry, founded in 1895, was formerly known as Cuihua Jewelry Store established in 1895 (Qing Dynasty Guangxu 21st year) with its headquarters in Shenyang. The brand was first recognized by the Ministry of Commerce of the PRC as a “Chinese Time-Honored Brand” in 2006, specializing in the research, development, design, production, and sale of gold, platinum, diamonds, and jade jewelry, and was listed on the Shenzhen Stock Exchange in 2014.