China Lumena will be removed from the Hang Seng Composite Index after its chairman and its controlling shareholder apparently absconded with 10 billion yuan of company funds
May 19, 2014 Leave a comment
Lumena fades off from benchmarks
Imogene Wong
Thursday, May 08, 2014
China Lumena New Materials Corp (0067) will be removed from the Hang Seng Composite Index after its chairman and its controlling shareholder apparently absconded with 10 billion yuan (HK$12.4 billion) of company funds.
Chairman Zhang Zhigang and controlling shareholder Li Yan, also known by his Tibetan name Suo Lang Duo Ji have fled in the past few days with the funds, mainland media reports said yesterday. Li also goes by a Western name, Dominique Shannon, and owns 33.5 percent of the firm.
Shares of the Sichuan-based industrial chemical maker have been suspended from trading since March 25.
But the firm denied the reports, saying it had contacted Zhang who told them he was in contact with Li and everything was on track.
Another firm owned by Li, Cheungdu-based Theng Hong Heavy Engineering, formerly known as Sichuan Tengzhong Heavy Industrial Machinery, also denied internet rumors that it had gone bankrupt.
In 2010 Theng Hong tried to acquire US utility vehicle maker Hummer from car giant General Motors but failed.
Lumena was attacked in late March by Glaucus Research, a California-based short-seller, which claimed it had faked key sales data by 90 percent.
The company denied the allegations but share trading has been halted since then. China Investment Corporation, the nation’s sovereign wealth fund, holds a 6.41 percent stake in Lumena
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