(Yicai Global) Oct. 18 -- Zhonghong Holdings, a debt-laden real estate developer, is just a day away from potentially becoming the first Chinese company to be ejected from the country's stock market if its shares languish below face value for 20 straight trading days.

Shares of Zhonghong [SHE:000979] have swapped hands for less than CNY1 (14 US cents) apiece for 19 days in a row, ending today at CNY0.82. Even if the stock gains tomorrow by the exchange-imposed daily limit of 10 percent, it would not be enough to return the shares to face value.

The matter now rests with the Shenzhen Stock Exchange, which has the power to strike the Beijing-based company from the board. If the exchange decides to suspend Zhonghong's shares and derivatives, it would then have 15 trading days in which to determine whether or not to delist the stock.

Founded in 2001, Zhonghong and its units have amassed overdue debts totaling CNY5.62 billion (USD811.6 million). It is currently in talks with creditors as it scrambles to find funds to service its obligations. Allegations that the company faked earnings reports last year triggered an investigation by a local branch of the China Securities Regulatory Commission in August.

Editor: Ben Armour