Lenovo Withdraws Application For Listing In Shanghai: Its Stock Sinks

This week was full of surprises, as, on October 6, the price reached a six-month high of $ 35.83, and it commenced declining on the same day. From Tuesday to Friday, the stock price dropped 33% from $35,89 to $23.90. Over the past 5 days, the cost has decreased by 8.6%. The move was prompted by the Chinese tech giant withdrew its application for a 10 billion yuan or $ 1.55 billion listing of shares in Shanghai.

Lenovo will withdraw its application a few days after it has been accepted by Shanghai’s STAR market. It said Sunday it had done so due to the possibility of losing the validity of the financial information in its prospectus during the review of the application. It also referred to relevant capital market conditions, such as the latest listing circumstances. However, the withdrawal of the application is not expected to have a negative impact on the group’s financial position. According to Lenovo’s statement, the business operations of the group are in good shape.