Shares of Hangxiao Steel will continue to remain suspended today pending a stock exchange decision.
The Shanghai Stock Exchange ordered the suspension of this Shanghai-listed construction company since Monday following media reports that its multibillion-yuan contracts were in jeopardy.
"When the shares will resume trading is up to the stock exchange's decision," Zhou Bin, board secretary of Hangxiao, said yesterday. "We have no further statements to make at the moment."
Hangxiao announced on March 13 that it had won a contract in Angola, a construction and engineering project on public housing worth 34.4 billion yuan, sending its shares leaping several folds, catapulting the previously unknown construction company in East China's Zhejiang Province to instant stock market stardom.
Angola has scrapped a contract with Hong Kong-based China International Fund (CIF), which may put in jeopardy the contract Hangxiao won from CIF, China Business News reported on Monday.
But the Hong Kong firm denied the reports yesterday, saying the contract was still in place.
CIF established a carmaking joint venture with a local company in Angola that will begin producing pick-ups, SUVs, compact cars and other vehicles in October at a factory on the outskirts of Luanda, capital of Angola, local newspaper Jornal de Angola reported.
"We have consulted CIF on the issue and they have denied the media reports that their contract with Angola has been scrapped," Zhou said. "Our contract with CIF still stands good."
(China Daily July 12 2007)
