Shenzhen-listed Hengli Industrial Development Group will cease trading on the main board effective July 16, 2025, according to a definitive delisting notice issued by the Shenzhen Stock Exchange on June 17. The company’s shares will enter a 15-day winding-down period beginning June 25, during which they will trade on the exchange’s Risk Warning Board with modified trading rules.
Key Delisting Timeline:
- June 25: Start of delisting adjustment period (no price limits on first day)
- June 26-July 15: 10% daily price fluctuation limits apply
- July 16: Official delisting and transfer to over-the-counter market
Post-Delisting Trading Arrangements
Following formal removal from the exchange, Hengli’s shares will:
- Transfer Operations: Move to the National Equities Exchange and Quotations (NEEQ) delisted securities platform
- Trading Mechanism: Continue trading through weekly auction sessions
- Disclosure Requirements: Maintain basic financial reporting obligations
The decision culminates a three-year compliance struggle for the industrial equipment manufacturer, which failed to rectify issues triggering its *ST (special treatment) designation in 2023. The company reported eight consecutive quarterly losses prior to the delisting determination, with its market capitalization having eroded 92% from peak levels.
Investors holding positions through the delisting date will retain ownership but face severely reduced liquidity. The NEEQ delisted board currently hosts 47 similarly positioned companies, with average monthly trading volumes below 1% of their former main board activity. Regulatory filings indicate no active restructuring plans to facilitate relisting.
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