China developer Shimao receives resumption guidance from HK stock exchange

THE Hong Kong stock exchange has given guidance to Shimao Group, telling the troubled Chinese property developer what it needs to do before trading can resume in its shares, the company said in a statement on Tuesday (Jul 19).

Trading in the shares was suspended on April 1 after the Shanghai-based developer failed to publish its 2021 financial results before the regulatory deadline.

Publishing those results and conducting an appropriate independent investigation into the issues raised by its former auditor, PricewaterhouseCoopers (PwC), were among the main items required by the stock exchange.

If Shimao fails to remedy the issues that led to the suspension of its shares by Sept 30, 2023, the bourse said its listing division would recommend de-listing the stock.

Shimao said previously that PwC had resigned as its auditor, with effect from March 24, because the developer was unable to provide all the information requested. PwC had requested information related to certain trust loan arrangements involving the firm’s joint ventures and associated companies, it said.

Several cash-strapped developers who have missed their offshore debt obligations and suspended trading, including China Evergrande Group and Kaisa Group, have also received similar guidance from the regulator. REUTERS