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 reporters on this story: Jasmine Wang in Hong Kong at jwang513@bloomberg.net; Rachel Evans in Hong Kong at revans43@bloomberg.net

To contact the editor responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net

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