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On May 16, 2017, Shenzhen Stock Exchange (“SZSE”) issued the decision to delist the shares of Shenzhen Century Plaza Hotel Co., Ltd. (“Century Plaza Hotel”) from trading. SZSE noted that Century Plaza Hotel has recently instituted administrative proceedings with Shenzhen Intermediate People’s Court requesting SZSE to rescind the delisting decision.
SZSE’s determination to delist Century Plaza Hotel has sufficient legal and factual grounds. Due to the company’s violation in providing guarantee for related parties and other matters, annual report auditors issued a disclaimer of opinion in respect of the financial statements presented by the company in 2013 and 2014. Trading of the company’s stock was suspended as of May 21, 2015. Prior to the disclosure of 2015 annual reports, the Company filed an application to SZSE to resume trading of its stock. In strict compliance with the provisions of the Listing Rules and relevant laws and regulations, SZSE commenced the review. On May 15, 2017, the Listing Committee of SZSE conducted the review on Century Plaza Hotel’s application to resume trading, deciding that the company failed to satisfy the listing conditions as set forth by the first paragraph of Article 14.2.1 of the Listing Rules and that the documents submitted by the Company regarding the application for listing resumption were not in compliance with Article 14.2.14 of the Listing Rules. As per Articles 14.2.17 and 14.4.2, and Paragraph 27 of Article 14.4.1 of the Listing Rules, SZSE made the decision to delist the securities of the company.
SZSE shall continue to conduct strict regulation and supervision in accordance with laws, and resolve to hold delisted companies liable under the guidance of China Securities Regulatory Commission; strictly review applications for listing resumption or re-listing and indentify and regulate behaviors to evade delisting. SZSE resolves to initiate the delisting procedure when a company triggers the delisting conditions, determined to create a clean market and maintain market orders and shall spare no efforts to preserve the solemnity of the delisting system.
