Subaye, China Ritar shares slump in OTC trades

Battery maker China Ritar, which has been halted since April 18, slumped 50 percent to 80 cents. Shares of Subaye, an online business services provider, have been halted since April 7 and on Friday plunged 63 percent to 80 cents.

Subaye on April 7 announced the resignation of its auditor, PriceWaterhouseCoopers Hong Kong, because of accounting issues. Subaye later received a subpoena from the Securities and Exchange Commission concerning the company's business operations and said in May its chief executive would resign.

China Ritar on Thursday asked the Nasdaq to delist its shares after the exchange said the company had not filed timely reports with the SEC.

Trading in several Chinese companies has been halted on U.S. and Canadian exchanges, some for months, as company and exchange officials investigate suspicions of accounting fraud. [ID:nN1E75L08Q]

The halts -- described by one exchange official as an "extraordinary remedy" -- have stranded investors unable to close out positions. Those holding shares are anxious to dump them, while short sellers usually must pay borrowing fees while they wait to cash out.

On Thursday, NIVS IntelliMedia Technology Group Inc (NIVS.PK) resumed trading after being halted since March 24. The stock fell 34 percent to 34 cents on Friday.