The New York Stock Exchange said it planned to delist the Chinese online home platform Danke for failing to report its financial results in a timely fashion and for failing to respond to repeated requests from the American bourse’s regulatory arm.
The property company, formally known as Phoenix Tree Holdings with a business model similar to WeWork, has not reported its financial results since the first quarter of 2020 when it posted a net loss of 1.23 billion yuan (US$188 million). Founded in 2015, Danke reported full-year losses in the previous three years.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
Shares of the company, which traded in New York under the Phoenix Tree name using the mnemonic DNK, had been suspended since March 15 pending the delisting, NYSE said. The stock had lost 75 per cent of value in the past 12 months, plunging 82 per cent since its initial public offering in January 2020. Danke did not immediately respond to a request for comment on Wednesday.
American investors, including pension funds and university endowments, have until November 11 of this year to fully divest their holdings in any designated Chinese military companies following the executive order, which former US President Donald Trump signed in November 2020.
The Biden administration is undertaking “complex reviews” of various Trump policies towards China, White House press secretary Jen Psaki said at the time.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2021 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2021. South China Morning Post Publishers Ltd. All rights reserved.
