Sinotrans Gains After Responding to Media Report on ProbeClement Tan
Sinotrans Ltd., a unit of a Chinese-government owned company, gained in Hong Kong trading after it responded to a newspaper report that managers at its parent company were under investigation in a fraud case.
The Beijing-based logistics provider rose 4.3 percent to HK$5.37 as of 11 a.m. local time. The stock resumed trading today after suspension yesterday following a 13 percent plunge.
China Business News reported yesterday that managers at units of Sinotrans’ unlisted parent were being probed by authorities on suspicion of helping clients reuse goods as collateral for loans. The newspaper didn’t say where it got the information. The parent company is Sinotrans & CSC Holdings Co.
“The company clarifies that the subject matter of the media report does not relate to the operations of the company or any of its subsidiaries,” Sinotrans said in an exchange filing after markets closed yesterday.