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Boyuan to be delisted after breaking rules

CCTV.com

05-11-2016 11:30 BJT

Its the final day that investors can trade shares in China's Zhuhai Boyuan Investment on the Shanghai Stock Exchange. On March 21st, the China Securities Market authority announced it will terminate the listing of Boyuan shares.

It will be the first company delisted for breaking rules on information disclosure. Boyuan entered the delisting arrangement period on March 29th. Its shares were traded for 30 trading days until today, according to the rules. After close Wednesday, the company's shares will be transferred to the National Equities Exchange and Quotations within 45 trading days.

Analysts say the value of the company will shrink significantly.

"After being transferred to National Equities Exchange and Quotations, the trading volume and value of Boyuan will shrink significantly. The entire daily trading volume on the NEEQ is between 200 million and 300 million, while the price-to-earnings ratio is currently at 20 to 30,"Zhou Huan, strategist with China Asset Management, said.

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