China Hongqiao Shares Resume Trading to Rise 40 Percent Following Negative Emerson Analytics Report
(Yicai Global) Oct. 30 -- China Hongqiao Group Ltd. [HKG:1378], a Shandong-based aluminum product manufacturer, resumed trading in the equity market, more than six months after suspension of its trading. The firm's share price rose by more than 40 percent at one point during intraday trading.>
The company' stock performance dpersed doubts raed by a report sued by the equities analys institution Emerson Analytics. Last March, Emerson Analytics sued a negative report on China Hongqiao Group, pointing to a number of what it called sues with the company such as its soaring profits, low generation costs and excessive debt in recent years, also questioning its development model of fast expansion.
China Hongqiao released a statement soon after the report, saying that the Emerson's analys was very mleading and ill-founded and that the group would sue a more detailed announcement for further clarification and refutation.
However, it didn't sue it until Oct. 25. In the second statement the firm claimed that it not unlikely that Emerson collaborates with certain institutions or people, including Hongqiao's competitors in the aluminum industry, to "maliciously attack" Hongqiao.
China Hongqiao suspended trading of its shares on March 21 and resumed it only today. Its share price opened higher, jumping 40 percent at one point during intraday trading to reach HKD10.28 (USD1.31) at the highest stage.