Yanzhou Coal H-share trading suspended, possibly related to acquisition report

[2008-12-23 17:04:27]

   

    Trading of the H-shares of Chinese coal producer Yanzhou Coal Mining Co., Ltd in Hong Kong was suspended Friday for unclear cause. Market guess goes that it might be related to a media report on the company"s negotiation on a 3 billion-Australian-dollar bid for Australian coal producer, Felix Resources Ltd..



A report in Australia said some managers of Yanzhou Coal arrived in Australia Thursday to take on-site investigation of the Ashton open pit coal mine of Felix.



It is hard to estimate the influence of the hearsay on the stock price of Yanzhou Coal for lack of details. However, if the purchasing price stays reasonable and all reports on the bid are true, it means that Chinese resource-based enterprises are looking for overseas acquisitions amid international economic sluggishness.



Yanzhou Coal H-share was priced at 4.29 HK dollars before suspension.



Trading of its A-shares was normal Friday, up 1.97 percent for the whole day to close at 9.83 yuan.





 
Source: 中国矿权交易网
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