(Yicai Global) Sept. 1 -- Guangshen Railway's shares tumbled in the US but rose in China after the first Chinese railway operator to go public in New York and Hong Kong said that it will delist from the New York Stock Exchange due to its limited trading volumes.

Guangshen Railway's stock price [NYSE: GSH] slid 4.9 percent to USD9.51 in New York yesterday. Its Shanghai-listed shares rose 2.1 percent to CNY2.48 (USS 36 cents) this morning and its Hong Kong ones climbed 2.7 percent to HKD1.55 (US 20 cents).

The board of directors at the operator of a route between southern China's Guangzhou and Shenzhen has approved the delisting plan, the Shenzhen-based firm said in a statement yesterday. The trading volume of the shares has been quite limited while the issuer needs to cover the management costs and comply with local regulations, it explained.

After the delisting, investors can trade the stock over-the-counter in the US. Moreover, overseas investors can still access the company's shares through Hong Kong. The largest shareholder of the firm is China Railway Guangzhou Group, a unit of China State Railway Group, holding a 37 percent stake.

Guangshen Railway made a net loss of CNY614 million (USD90 million) in the virus-hit first half after reporting a new profit of CNY762 million a year ago, according to its earnings report. Its revenue decreased by 27 percent to CNY7.5 billion (USD1.1 billion).

In May 1996, Guangshen Railway listed its shares in New York and Hong Kong. It issued 20.5 million American Depositary Shares and 218 million equities in Hong Kong, raising a total of CNY4.2 billion (USD617.8 million) by exercising its greenshoe option.

Editor: Emmi Laine