NASDAQ Delists Chinese Company

The NASDAQ stock exchange has ordered the delisting of Keyuan Petrochemicals, a commodity chemical producer based in Ningbo, on China’s eastern coast. The delisting, according to a Keyuan statement, is the result of a failure to provide audited financial statements on a timely basis. Keyuan says it will appeal the decision while working with a new auditor to produce audited statements. KPMG, the original auditor, reported this spring that Keyuan had improperly recorded certain sales and cash transactions. Keyuan denies the assessment, has initiated an investigation, and is hiring a new auditor, GHP Horwath.