Zhongchao (ZCMD) Stock Falls After 1-for-31 Reverse Split to Maintain Nasdaq Listing

Zhongchao Inc. (ZCMD) shares fell Friday after the China-based healthcare provider enacted a 1-for-31 share consolidation to avoid delisting from the Nasdaq. The reverse stock split became effective on June 5, 2026, sharply reducing the number of outstanding shares in an effort to push the bid price back above the exchange’s $1 minimum requirement. Investors sold the news, viewing the extreme ratio as a sign of distress, and the stock declined in afternoon trading. The move follows Nasdaq’s earlier notification that ZCMD had traded below the threshold for 30 consecutive business days. Zhongchao, which offers oncology and health management services, will see its market capitalization unchanged by the reverse split. The action buys time to satisfy listing rules, but typically does little to restore investor confidence.