I am not saying that HRCT will not do a reverse split, it is just my best guess.
A reverse split would be in the best interests of new shareholders and the company for future deals but the stigma of having done a reverse split would not be. It tends to make the company look like a scam and fuel speculation that they would do it again. It isn't a very good thing for current shareholders (including management).
Chinese companies seem to have no problem with being traded at a low price per share with lots of shares outstanding. It is kind of an Aisian market thing. But HRCT is actually an American company that happens to be doing business in China. So it suffers from being a penny stock in both perception and actuality.
If HRCT were traded on the Hong Kong Exchange and was owned and traded primarily by Chinese investors, it would not make much difference but in the US market, the difference between being OTCBB and a listed stock is significant. This is why foreign ADRs traded on the NYSE are bundled so that each ADR share represents 2 to 100 real shares in the company.
GSH for example..... Each ADR share represents 50 actual shares in the railroad. If it didn't it would trade for pennies here and not garner much interest from large investors.
Market Data 
Markets 
AI
