Price surges spark probe

PUBLISHED : Thursday, 21 August, 1997, 12:00am
UPDATED : Thursday, 21 August, 1997, 12:00am

The four companies in the mainland-backed Shougang Group yesterday revealed the Securities and Futures Commission (SFC) was investigating trading in their shares.

In separate statements, the firms said the SFC was looking into the unusual price and trading of their shares on August 13, the day before the four stocks were suspended.

The companies said they knew of no reason why the shares had risen so much on the day but said they were considering possible acquisitions and expansion.

The statements, made at the request of the stock exchange, stressed the investigations were not connected to the financial conditions of the group.

Shougang Concord International Enterprises Co, Shougang Concord Technology Holdings, Shougang Concord Century Holdings and Shougang Concord Grand (Group) are controlled by China's Shougang Corp, one of the country's largest steel-makers.

Shougang International, which makes steel and electronic products, said it was considering acquiring certain assets from its controlling shareholder but no agreement had been reached.

Its shares surged 23.7 per cent to $2.475 on August 13, with 167.7 million shares traded, far above the year's average volume of 24.3 million.