(Yicai Global) June 11 -- Shenda's stock price slumped today after the Chinese textiles maker said that its US unit will be liquidated due to operational issues caused by the Covid-19 pandemic and trade frictions.

Shares of Shenda [SHA:600626] slid nearly 7 percent in the morning, after which they were 5.3 percent down at CNY4.98 (US 70 cents) in the afternoon.

Shenda will file with a local North Carolina district court to declare PFI Holdings bankrupt, the Shanghai-based parent said in a statement yesterday.

Since the second half of 2017, PFI has lost major clients amid the unfavorable conditions brought forth by the protectionist foreign policy of 'America First' and a warm winter, according to the statement. Huge losses began to occur last year and the Covid-19 epidemic only made things worse in the first half of this year, it added.

Shenda invested USD31.7 million to indirectly hold a 75 percent stake in the home textiles firm in September 2015, looking to increase its annual profits as much as USD8.6 million. It projected its sales to rise up to USD68 million each year.

Editor: Emmi Laine