South Korea's Samsung Biologics rallies after avoiding delisting

Samsung BioLogics Co. signage is seen behind medicine bottles on display at the company's headquarters and production facilities in Songdo district in Incheon, South Korea, on Wednesday, April 19, 2017. Photographer: SeongJoon Cho/Bloomberg

Samsung Group’s biotechnology arm rallied Tuesday as a Korea Exchange evaluation committee decided not to delist the unit’s shares after financial regulators concluded it violated accounting rules.

Shares of Samsung Biologics Co., the seventh-biggest member of the benchmark Kospi index as of Monday’s close, jumped as much as 26 percent, set for its biggest rally on record, after the panel said financial stability and continuity of business outweighed a lack of management transparency. The KRX plans to monitor Samsung Biologics’s efforts to improve management transparency for the next three years.

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