More than half of all listed Chinese companies have suspended their own shares as Beijing struggles to contain a massive stock rout.
At least 1,430 of the 2,800 companies traded in China have elected to pull their shares as markets continue their crazy roller-coaster ride, according to state media.
The number keeps ticking upward — on Wednesday morning alone, hundreds of firms announced a halt in trading, according to a review of stock exchange filings.
Companies — particularly small and medium-sized firms — are clearly nervous about taking a nasty hit due to recent market fluctuations.
Zhejiang Great Southeast, a plastics manufacturer traded in Shenzhen, suspended its shares on Tuesday, due to “the uncertainty of the situation, and in order to avoid unusual stock price volatility and to safeguard the interests of investors.”
Another firm, Hangzhou First PV Material, a solar company listed in Shanghai, halted trading Wednesday to avoid abnormal market fluctuations from killing its shares, according to a company filing.
Company shares can be suspended for months, even years — all subject to regulatory approval. While firms doing this now may find some defense against volatility, it’s possible that they are only delaying the inevitable.
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