Shanshan Holdings shares frozen, control risk looms

Ningbo Shanshan Co., Ltd. (SSE:600884) announced that a notable portion of shares held by its controlling shareholder, Shanshan Group, and its affiliates, including Shanshan Holdings, have been frozen. A total of 551,287,333 shares are frozen or marked, representing 90.12% of the holdings by these entities and 26.39% of the company’s total share capital. Shanshan Holdings' cumulative frozen and marked shares amount to 656.23% of its holdings. The company said the move would not affect its governance and operation but warned the high percentage of frozen shares could lead to a change of control if they are subject to mandatory judicial disposal. Shanshan Group is undergoing debt restructuring, and there are some risks.