Chinese Pork Producer Faces Delisting Amid Insolvency Risk

The Shenzhen Stock Exchange has warned Chinese hog farmer and pork producer Jiangxi Zhengbang Technology Co. Ltd. (002157.SZ) it faces potential delisting amid risk of insolvency, according to a Wednesday filing by the company.

The crisis facing one of the largest Chinese hog producers came as it reported huge losses during a downward trend in hog and pork prices in 2021 after making big investments when the prices were rising — a risk that all pork producers face when navigating what is known as the “hog cycle.”