GOME Retail Holdings (HKEX 00493), a Hong Kong-based holding company involved in online sales of electrical and domestic products and audio equipment and with retail outlets in China, announced before the market opened on July 21 a temporary suspension of shares trading pending the publication of the company’s information announcement. GOME Retail was trading at HK$0.29 (US$0.04) before the suspension, with a market capitalization of HK$10.3 billion (US$1.53 billion). Trading had not been restarted by July 27.
Mainland media sources pointed out that GOME Retail’s Internet home improvement company “Dabanjia” has suspended its entire line of business and is also said to be in a financial crisis. Some employees said they were owed wages, while both founder Cui Jian and CEO Gao Fei officially resigned earlier in July.
