China’s second-largest construction equipment maker Zoomlion Bonds Fall, Stock Trading Halted After Media Report accusing it of falsifying sales

May 27, 2013 Leave a comment

Zoomlion Bonds Fall, Stock Trading Halted After Media Report

Zoomlion Heavy Industry Science and Technology Co., China’s second-largest construction equipment maker, halted stock trading and saw its bonds decline after a report on Sina.com accused it of falsifying sales. The Shenzhen-listed shares were halted because of the report and trading will resume after the company posts a filing on the issue, Changsha-based Zoomlion said in a statement. The Hong Kong-traded stock was also suspended. Zoomlion’s $600 million of 6.125 percent bonds due December 2022 slumped 2.1 cents on the dollar to 95.4 cents as of 11:21 a.m. in Hong Kong, the lowest level since March 6 and heading for the biggest daily decline since Feb. 4, Bloomberg prices show. Zoomlion’s Hong Kong-traded stock has slumped 31 percent this year as its first-quarter profit plummeted 72 percent. Construction-equipment makers, including bigger rival Sany Heavy Industry Co. (600031), face a drop in orders as slowing economic growth and government curbs on the property market sap demand. Hong Xiaoming, a Zoomlion vice president in charge of the finance department, said in a mobile-phone text message that the company will issue a clarification today. She didn’t elaborate.

To contact the reporters on this story: Jasmine Wang in Hong Kong at jwang513@bloomberg.net; Rachel Evans in Hong Kong at revans43@bloomberg.net

Filed under Investing Process, Macro Trends

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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