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China property
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Chinese developer Languang forced to delist in Shanghai, with peers to follow as property-market crisis reverberates

  • Sichuan Languang Development, once hailed as a top investment value, has traded below 1 yuan for more than 20 days and will be delisted on June 6
  • Wave of delistings shows some developers are more vulnerable than expected and could further dampen home-buying sentiment, analysts say

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Residential buildings at the Hai Yue Cheng property project, developed by Sichuan Languang Development in Beijing, pictured on December 22, 2022. Photo: Bloomberg
Elise Makin Beijing
Two years ago, Sichuan Languang Development was recognised as one of the 10 best Chinese developers on the A-share market in terms of investment value. Next Tuesday, the Sichuan developer will be delisted in Shanghai with a share price close to zero.
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The company’s shares closed below 1 yuan (US$0.14) for 20 consecutive trading days starting on April 6, triggering the delisting threshold set by the Chinese stock exchange, which then decides within 15 days whether to delist the stock. On June 6, Languang will lose its listing status after nine years on the Shanghai market, according to a filing on Wednesday.

More could face the same fate. The Shenzhen bourse told Zhongtian Financial Group of Guizhou province and Wuhan-based Myhome Real Estate Development this month that it intends to delist them. Next could be Tahoe Group and China Calxon Group; their shares have closed below 1 yuan for 18 and 20 days straight, respectively. Calxon said trading of its stock will suspend starting on Thursday.

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As of Wednesday, five additional real estate stocks were trading below 1 yuan, with a few hovering just above the mark, according to data compiled by the Post. In April, Sinic became the first mainland developer to be delisted in Hong Kong.
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