Sinovel Wind Falls After China Regulatory Probe: Shanghai Mover
Sinovel Wind Group Co. (601558) fell for a second day, tumbling to the lowest since its initial public offering three years ago after saying it’s under investigation by China’s securities regulator.
The stock declined 1.7 percent to 3.48 yuan in Shanghai trading, the lowest closing price since it began trading on Jan. 13, 2011. The shares fell 9.9 percent yesterday.
This week’s 11 percent drop follows a statement from the Beijing-based company on Jan. 12 that the China Securities Regulatory Commission is investigating a suspected violation of securities laws and regulations. The probe will prevent trading of shares even after yesterday’s expiration of a provision that would have cleared the way for them to trade, the company said.
Sinovel has about 1.84 billion so-called lock-up shares, Bao Zhen, a media manager at Sinovel, said today by phone. He declined to elaborate on the probe.
Sinovel, China’s third-biggest maker of wind turbines, was notified by regulators in May of a separate investigation related to a 2011 accounting error, which the company says hurt its ability to collect payments and add business.
The company’s biggest shareholders, including DHI DCW Group Co., Beijing Tianhua Zhongtai Investment Co., Future Material Investment Ltd., and smaller shareholder Beijing Huafengneng Investment Co. have pledged that beginning yesterday they won’t transfer their shares for one year to two years, the Beijing-based turbine producer said on Jan. 10.
The company said on Jan. 9 that the Shanghai Stock Exchange may place its stock on the watchlist for possible delisting because it may have losses for two consecutive years, according to a statement to the exchange.
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