Apr 2, 2023
CIFI, Jiayuan Among Firms With HK Stock Halts on Delayed Results
, Bloomberg News
(Bloomberg) -- Stock trading for some Chinese developers was halted Monday in Hong Kong for not releasing 2022 results, an ongoing reminder of the sector’s travails despite improving new-home sales.
CIFI Holdings Group Co. and Jiayuan International Group Ltd. were among 39 companies overall that were suspended for not disclosing figures to the Hong Kong stock exchange by March 31, according to Bloomberg calculations. CIFI said its auditor received an anonymous letter that raises challenges about some transactions while Jiayuan highlighted recent resignations among other factors.
Investment bank China Renaissance Holdings Ltd. is also among the halted stocks, after the company said it will postpone releasing results because its auditors can’t get in touch with Chairman Bao Fan. He has been cooperating in an unspecified investigation by Chinese authorities.
Last year, at least 32 stocks — a majority being Chinese builders — were halted for firms not meeting the deadline to release annual results. Some of those developers — including defaulters Sunac China Holdings Ltd. and Shimao Group Holding Ltd. — have yet to resume trading as that year’s financial data remain undisclosed.
According to Hong Kong stock exchange rules, trading of a listed firm’s shares is halted if audited results aren’t released within three months of fiscal years concluding. Delisting is possible if suspensions last 18 months.
The inability to release full-year figures speaks to the impacts of the liquidity crisis that followed Beijing’s efforts to crack down on property-related leverage growth in China. While early signs of a housing-market stabilization have emerged in recent months after a slew of support measures were released, investor confidence remains fragile. A Bloomberg Intelligence gauge of developer shares has fallen 25% from a January peak.
Some developers like Logan Group Co. released 2021 results following several months of paused trading. Its shares plunged 51% the day trading resumed last August.
--With assistance from April Ma.
©2023 Bloomberg L.P.
