Hierbij een voorbeeld ve Chinees staalbedrijf dat al een tijdje in zware problemen zit. In de context ve gisteren gepubliceerd verhaal dat er volgens een ervaren expert bij verschillende Chinese staalbedrijven verlies geleden wordt van 40 USD per ton staal, kan de zo hard gewenste sanering in de gehele sector snel gaan.
April 25, 2017 7:00 pm JST
Chongqing Iron & Steel shares dive amid worries over future
Creditor asks for court-led restructuring, overshadowing rehabilitation efforts
NORIKO OKEMOTO, NQN staff writer
HONG KONG -- Investors dumped China's Chongqing Iron & Steel shares on the Hong Kong market Tuesday, as pessimism took hold regarding the company's restructuring efforts after it published a notice saying a creditor had requested that a court begin restructuring the company.
Shares of the midsize steelmaker at one point fell 19.1%, from the previous day's close at HK$1.100, renewing their year-low. That was the issue's lowest point in about 11 months, having fallen for four straight trading days. Chongqing Iron & Steel shares closed at HK$1.140.
The sell-off has completely erased gains in the shares since June 2 last year, which were fueled by investor hopes for a recovery based on the company's restructuring plan.
Investors were unnerved by the notice, which was made public before the start of trading on Tuesday. In it, a creditor, industrial metal maker Chongqing Laiquyuan Trading, applied to a Chongqing court for the reorganization of the struggling steelmaker, saying it was "unable to repay the debts due, and that the company's assets are insufficient for the repayment of all its debts."
Although the application for restructuring may or may not be accepted by the court, the notice has overshadowed Chongqing Iron & Steel's recovery prospects because the application states the company faces a risk of being delisted from the Shanghai Stock Exchange, which has suspended trading in the stock. The application also points to the risk that the company may be declared bankrupt.
Chongqing Iron & Steel has been working with various parties, including a company affiliated with the Chongqing city government, to pull out of the slumping steel industry and turn itself into a financial company.
On the Shanghai market, the shares were designated as having a high probability of being delisted, after the company booked losses for two consecutive years. The exchange halted trading in the shares on June 2, 2016.