Largest Shareholder of Troubled Chinese Shadow Bank Plans to Delist

(Bloomberg) — The largest shareholder of the Chinese trust business at the heart of the country’s shadow banking crisis plans to delist its shares due to “significant uncertainties,” raising more concerns about financial contagion in the $18 trillion economy.

Jingwei Textile Machinery Co. said Tuesday in a filing it plans to pull its shares from the Shenzhen stock exchange, a rare move by a central government-backed enterprise. The company also cited “market changes” for the move, aimed at protecting the interests of smaller shareholders.