China’s Tougher Delisting Rules Send Weakest Stocks Plunging
- More than a dozen firms under special treatment fall 5% limit
- Revisions come after efforts to boost investor confidence
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China’s weakest stocks faced another blow after exchange regulators issued tougher rules to weed them out of the market.
More than a dozen firms under so-called special treatment status saw shares fall their 5% limit in Shanghai and Shenzhen after draft revisions were issued late Monday seeking to shorten the delisting process and toughen financial, trading and violation criteria. Companies under special treatment have received delisting warnings for reasons ranging from accounting issues to business failure, and they’re subject to trading restrictions.