Zoomlion Bonds Fall, Stock Trading Halted After Media Report
Zoomlion Heavy Industry Science and Technology Co., China’s second-largest construction equipment maker, halted stock trading and saw its bonds decline after a report on Sina.com accused it of falsifying sales.
The Shenzhen-listed shares were halted because of the report and trading will resume after the company posts a filing on the issue, Changsha-based Zoomlion said in a statement. The Hong Kong-traded stock was also suspended.
Zoomlion’s $600 million of 6.125 percent bonds due December 2022 slumped 2.1 cents on the dollar to 95.4 cents as of 11:21 a.m. in Hong Kong, the lowest level since March 6 and heading for the biggest daily decline since Feb. 4, Bloomberg prices show.
Zoomlion's Hong Kong-traded stock has slumped 31 percent this year as its first-quarter profit plummeted 72 percent. Construction-equipment makers, including bigger rival Sany Heavy Industry Co. (600031), face a drop in orders as slowing economic growth and government curbs on the property market sap demand.
Hong Xiaoming, a Zoomlion vice president in charge of the finance department, said in a mobile-phone text message that the company will issue a clarification today. She didn’t elaborate.
To contact the editor responsible for this story: Anand Krishnamoorthy at email@example.com