China’s Kingold Jewelry delisting from Nasdaq, shares plunge 27%

REUTERS/Shannon Stapleton

China’s Kingold Jewelry Inc fell by 27% on the Nasdaq stock exchange on Wednesday after the company said it would voluntarily delist its shares.

The plunge means Kingold‘s Nasdaq-traded shares have lost almost 60% of their value since a report in Chinese business media in June alleged it had obtained loans using fake gold bars as collateral.

In that report, Kingold chairman Jia Zhihong denied any wrong-doing. The company did not immediately respond to a Reuters request for comment on Wednesday.

“The decision to delist from Nasdaq resulted from the board of directors’ review of numerous factors, particularly the cost and feasibility of ongoing compliance with the Nasdaq listing requirements and the company’s current financial condition,” Kingold said in a filing on Wednesday.

The company said it was twice informed by Nasdaq, on June 30 and July 2, that it was not in compliance with reporting requirements and a plan it submitted to regain compliance was rejected by the exchange.

“As such, the company understands that it is likely Nasdaq will commence procedures to delist the company’s common stock,” Kingold said, adding that its board decided not to pursue an appeal and to delist voluntarily.

Kingold said it expected trading in its shares to be suspended from Aug. 21, with the delisting effective Aug. 31.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.