The Shanghai Stock Exchange is demanding answers for the dire performance by Nanjing Tanker in the first days since it relisted.
Nanjing Tanker, a unit of Sinotrans & CSC, has seen its stock slump to daily decline limits for five trading days in a row since the company’s shares were relisted in Shanghai on January 8.
The company is China’s first state-run company to relist after delisting.
The stock price of the company has declined by close to 40% so far since the first day of relisting, representing a loss of over RMB6bn ($888m) in market value.
The unusual fluctuation of the company’s stock has forced the Shanghai Stock Exchange to send a letter requesting explanations.
Nanjing Tanker denied that it has unreported major restructuring activities still ongoing but admitted that the company is facing uncertain profitability in the next three years, which will make it hard to secure equity financings.