Sinovel Falls Most in Four Weeks on Probe: Shanghai MoverBloomberg News
Sinovel Wind Group Co., China’s third-biggest wind-turbine maker, fell the most in four weeks in Shanghai trading after the company said it was being investigated for possible violations of Chinese securities laws.
The shares closed 3.1 percent lower at 5.58 yuan, the biggest one-day fall since May 2. The benchmark Shanghai Composite Index fell 0.3 percent.
Sinovel said after the close of markets yesterday that it received a notice from the China Securities Regulatory Commission that a probe had been started into suspected violations. The filing to Shanghai’s stock exchange didn’t provide more details about the investigation.
In March, Sinovel revised down its 2011 profit by 22 percent to 607.4 million yuan ($99.1 million), citing an accounting error.
The wind turbine maker is also currently embroiled in a legal dispute with Devens, Massachusetts-based American Superconductor Corp., which is seeking more than $1.2 billion in damages in Chinese courts from its former largest customer. AMSC accused Sinovel of stealing its technology and violating sales contracts.
— With assistance by Sarah Chen