Molong Petroleum Shareholders Face Shenzhen Trading Curb After Breaching Regulations
Yicai Global
/SOURCE : Yicai
Molong Petroleum Shareholders Face Shenzhen Trading Curb After Breaching Regulations

(Yicai Global) Feb. 7 -- Two shareholders of a Shandong-based machinery company face trading restrictions after failing to disclose equity changes to the Shenzhen Stock Exchange or the China Securities Regulatory Commission.

Zhang Enrong and Zhang Yunsan, controllers of Shandong Molong Petroleum Machinery Co. [SHE:002490], did not fulfil their reporting and disclosure obligations before suspending trading and seriously violated regulations, the exchange said yesterday. As punishment, the exchange is restricting their trading between Jan. 26 and Feb. 24.

Last October, the machinery company forecast a swing into the black, a positive sign for investors after it lost CNY260 million (USD38 million) in 2015. Last week, the firm issued an profit warning with a projected lossof between CNY480 million (USD70 million) and CNY630 million. Between issuing the two statements, the company's general manager and actual controller sold hundreds of millions of yuan worth of Molong Petroleum's stock.

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