You are here

Four Chinese listed companies say major shareholders face margin calls

Wednesday, January 27, 2016 - 09:52

9987u8.jpg

[SHANGHAI] Four Chinese listed companies suspended trading in their shares on Wednesday, saying their major shareholders, who have used shares as collateral, face margin calls and will seek ways to avoid forced liquidation.

The announcement by the four Shenzhen-listed companies came after China's stock market tumbled over 6 per cent on Tuesday to 14-month lows, raising fears that further slides in equity prices would trigger more margin calls.

Zhenzhen Comix Group Ltd, Searainbow Holding Corp, Yunnan Tin Co Ltd and Fujian Guangfu Modern Household Wares Co Ltd said in separate exchange filings that their major shareholders would actively raise money, or pledge more collateral to answer margin calls.

More companies may be facing margin calls, but some may have chosen not to make public announcements, which means the actual situation could be worse than what's publicly known, official Securities Times reported on Wednesday.

REUTERS

sentifi.com

Market voices on:

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom