Fujian Zhenyun Plastics files for trading suspension on SGX; group “had encountered operational issues resulting in delays to the finalisation of the Group’s accounts

http://www.channelnewsasia.com/news/business/singapore/fujian-zhenyun-plastics/1551364.html#

Fujian Zhenyun Plastics Industry files for trading suspension on SGX

POSTED: 26 Dec 2014 21:22
The company’s shares have been on a trading halt since Tuesday (Dec 23). Market watchers say it is rare for companies to request for a conversion of trading halt to a suspension. SINGAPORE: China-based Fujian Zhenyun Plastics Industry has requested for a trading suspension of its shares on the Singapore Exchange. In a filing to the exchange on Friday (Dec 26), the company’s independent directors said the group “had encountered operational issues resulting in delays to the finalisation of the Group’s accounts”. As a result, its external auditor, Foo Kon Tan Grant Thornton LLP, was unable to proceed with its planned interim audit. The independent directors said they have initiated an internal inquiry into this matter.The company’s shares have been on a trading halt since Tuesday (Dec 23).

Market watchers said it is rare for companies to request for a conversion of trading halts to a suspension, which may suggest that the company may take a longer time to resolve its operational issues. A trading suspension would also mean that shareholders will not be able to unload their shares or make an exit from the company.

Fujian Zhenyun Plastics Industry is among several China-based companies listed on SGX under the direct listing framework. Under this framework, Chinese companies incorporated in China will be able to seek a listing on the SGX after obtaining approval from the China Securities Regulatory Commission.

The regulatory processes and due diligence conducted by the relevant regulatory organisations in both countries aim to provide greater assurance to the marketplace.

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