Investors in Chinese seafood companies appear to be spooked with a suspension of Guolian Aquatic Group shares on 20 April due to overselling.
Shares in Guolian, China’s top shrimp player, were suspended after falling over 10 percent from the opening price of CNY 15.74 (USD 2.36, EUR 2.15) – suggesting a CNY 5.63 million (USD 866,000, EUR 770,000) sell off in company equity. Chinese stocks have been on a roller-coaster ride since collapsing last July after a long bull run, with investors worried about economic growth and the direction of the country’s currency, which is ultimately set by government.
Investors are also worried that corporations – including seafood firms – are carrying record amounts of debt that has to be serviced in a tighter economic environment.
