Anzhong's Board Secretary Warned for Short Selling
Yicai Global
/SOURCE : Yicai
Anzhong's Board Secretary Warned for Short Selling

(Yicai Global) Sept. 28 – Mr. Zhang Baotian, vice president and board secretary of Anshan Heavy Duty Mining Machinery Co. [SHE: 002667], received a warning from regulatory authorities because he breached the company's commitments on corporate reorganization, adding to its woes after a loss-making first half in 2016.

The China Securities Regulatory Commission (CSRC) investigated Anzhong on May 27 2016 for suspected violations concerning the information disclosure of its reorganization deal. The case is still pending.

The reorganization report the company published says its senior managers will not transfer any equity they hold in the listed company affected by the CSRC investigation over suspected illegal information provided or disclosed by the company until the conclusion of the investigation.

The company said yesterday that Mr. Zhang sold 150,000 shares in Anzhong at a price of USD640 thousand (CNY4.27 million). CSRC's Liaoning provincial branch issued a warning to Mr. Zhang and the case has been included in his integrity file. Short selling involves selling borrowed securities in expectation of a later drop in price, and rebuying them afterwards at a discount.

Since May 27, Anzhong issued several risk disclosure notices advising investors that its shares may be suspended or delisted, and that the risk has not been eliminated. The company also displayed a poor earnings performance in the first half of the year, with its latest semi-annual report showing first-half net profit distributable to shareholders of the listed company was CNY8 million, down by 165.1 percentage points annually.

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