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Conferenza Tibet
Sisani Marina - 9 settembre 1995
China delays trade in firm during women's meeting

SHANGHAI, Sept 7 (Reuter) - China has delayed resumption of trading in blue-chip company Sichuan Changhong Electric Co Ltd to keep its stock market steady during a high-profile United Nations women's meeting in Beijing, brokers said on Thursday.

Changhong, suspended because of a disputed listing of part of its bonus issue of corporate shares, has already been out of trading for two weeks, a record on the Shanghai Stock Exchange since it was established in December 1990.

No date has been given for the resumption.

Shanghai brokers said the China Securities Regulatory Commission (CSRC) was investigating the improper listing and was in no hurry to resume Changhong trading to avoid any incident that might disturb the market during Nations Fourth World Conference on Women in Beijing.

"There has been little market-moving news in the past few weeks," said one broker. "The central government wants to keep the market in a low profile during the conference."

Changhong is one of the biggest companies on the Shanghai bourse with 160 million listed A shares, a class of shares reserved for domestic investors, and it has heavy weightings on the Shanghai A share index.

Its prices had been much higher than any other large stocks such as Shanghai Petrochemical Co Ltd and Maanshan Iron and Steel Co Ltd. When it was suspended on August 23, Changhong stood at 9.81 yuan ($1.18), while blue chips Shanghai Petrochemical and Maanshan both trade under three yuan ($0.36).

Brokers said investors expected Changhong to slump after it resumes trading.

"This will cause a sense of instability, which the authorities are not willing to see during the conference," another broker said.

 
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