China jewellery group Kingold to delist from Nasdaq

[BEIJING] China's jewellery group Kingold Jewelry said on Wednesday it is to voluntarily delist from the Nasdaq stock exchange, citing the cost of maintaining the listing as one reason for its decision among other factors.

In June, Kingold's shares fell sharply after a report in Chinese business media, which alleged the company had obtained loans by using fake gold bars.

Kingold chairman Jia Zhihong had denied any wrongdoing in the report. The company did not immediately respond to a Reuters request for comment on Wednesday.

"The decision to delist from Nasdaq resulted from the board of directors' review of numerous factors, particularly the cost and feasibility of ongoing compliance with the Nasdaq listing requirements and the company's current financial condition," Kingold said in a filing on Wednesday.

The company said it was twice informed by Nasdaq, on June 30 and July 2, that it was not in compliance with reporting requirements and a plan it submitted to regain compliance was rejected by the exchange.

"As such, the company understands that it is likely Nasdaq will commence procedures to delist the company's common stock," Kingold said, adding that its board decided not to pursue an appeal and to delist voluntarily.

Kingold's shares shed 33.6 per cent in premarket trade in New York on Wednesday after the announcement.

Kingold said it expected trading in its shares to be suspended from Aug 21, with the delisting effective Aug 31.

REUTERS