China issues new rules to delist vaccine maker, Latest Business News - The New Paper

China issues new rules to delist vaccine maker

This article is more than 12 months old

SHANGHAI China's stock exchanges have published new rules with powers to delist companies that have committed serious public safety violations, with the Shenzhen stock exchange saying it has begun the process of delisting vaccine maker Changsheng Bio-Technology.

The Shanghai and Shenzhen stock exchanges late last Friday posted separate statements on their websites detailing the rules.

They said the move would improve market compliance and enhance the quality of listed companies.

Changsheng was found in July to have falsified data and sold ineffective vaccines, sparking outrage and prompting the Shenzhen stock exchange to slap it with a "special treatment"risk alert, which is a step towards delisting.

It has also been ordered to pay 9.1 billion yuan (S$1.8 billion) in fines.

Under the new rules, the Shenzhen exchange said it has started delisting proceedings against Changsheng.

Its shares surged this week, which the exchange said indicated speculative activity. - REUTERS