(Yicai Global) Jan. 24 -- The share price of Leshi Internet Information and Technology Corp. Beijing [SHE:300104] tumbled by the daily limit of ten percent today when the company resumed trading after a nine-month suspension. The ChiNext Index, which tracks the Growth Enterprise Board, jumped more than 1,800 points, however.
Leshi plunged to limit down once the morning session started, closing at CNY13.80. By 11:02 a.m., the ChiNext Index had gained 1.9 percent to 1,801.37 points, the Shanghai Composite Index was down 0.37 percent to 3,533.49 points, and the Shenzhen Component Index lost 0.26 percent to 11,525.8 points.
The major restructuring the company proposed triggered the suspension from last April 17. The firm has decided to terminate its capital injection into Le Vision Pictures (Beijing) Co. because its equity in the hands of Le Holdings (Beijing) Co. -- a company Jia Yueting controls -- has been frozen, it announced on Jan. 19. Fund management companies with heavy representation in the listed company's equity structure have repeatedly cut its valuation since its trading suspension, with the latest paring down to CNY3.91.
Leshi was once a weighted stock in the ChiNext Index, and its consecutive limit-down after trading resumption may thus exert a great market impact, so regulators have taken preventive measures to avert such a development.
The Shenzhen Stock Exchange and Shenzhen Securities Information. Co. jointly decided on Dec. 18, last year to regularly adjust the sample stocks of the Shenzhen Component Index, SZSE 100 Index, Small and Medium-Sized Board Index, ChiNext Board Index and SZSE Small/MidCap Innovation Index. The Shenzhen Component Index, SZSE 100 Index and ChiNext Board Index delisted Leshi at the same time.