On August 21st, China’s largest car dealer, Guanghui Auto, announced that it will be delisted from the stock market in a week. Up to that day, a total of 40 companies have been delisted from the Shanghai and Shenzhen stock exchanges. Foreign media reports suggest that the number of delisted A-share companies this year may reach a historical high.
In the evening of August 21st, Guanghui Auto issued a statement stating that it had received a decision from the Shanghai Stock Exchange to terminate the listing of its stocks and convertible bonds. The delisting date is set for August 28th.
Guanghui Auto’s stock had consistently closed below 1 yuan (RMB) for 20 consecutive trading days from June 20th to July 17th. According to relevant regulations of the Shanghai Stock Exchange, this triggered the conditions for the delisting of the company’s stocks and convertible bonds.
Prior to its delisting, Guanghui Auto’s final closing price was 0.78 yuan, with a total market value of 6.47 billion yuan. At the end of the first quarter this year, the company’s equity attributable to shareholders was 39.042 billion yuan, and its total assets amounted to 111.737 billion yuan.
Alongside Guanghui Auto, another company being delisted is Guanghui Convertible Bonds, with the current bond balance standing at 2.882 billion yuan, set to mature on August 18, 2026. The latest price of Guanghui Convertible Bonds before delisting is under 50 yuan.
Bloomberg reported that the trend of A-share delisting is expected to continue, with the number of delisted companies this year likely to reach a new high.
According to Bloomberg’s data, as of August 21st this year, a total of 40 A-share companies have been delisted, and an additional 9 companies have received preliminary notices from the exchanges of the intended delisting of their stocks, awaiting final delisting notifications.
This indicates that the number of A-share delisted companies this year might approach 50, exceeding last year’s historical high of 45.