Exchanges Take Aim at Firms Facing Delisting in Bid to Rein In ‘Backdoor Listings’

(Beijing) — China’s stock exchanges are targeting companies facing delisting that are trying to restructure their assets solely to become shell companies and profit from “backdoor listings.”

In December, the Shanghai and Shenzhen stock exchanges sent letters to 11 companies on the verge of delisting, questioning the role of related companies in their transactions, sources of funding and sales of assets below market prices.