We will pay our debt, says Zhu Kuan

PUBLISHED : Wednesday, 27 May, 1998, 12:00am
UPDATED : Wednesday, 27 May, 1998, 12:00am
 

Zhu Kuan Development, which started trading on the stock exchange yesterday, has emphasised that it always honours its debts, after an attempt was made to sabotage its trading debut.


The red chip, issued at $1.13 a share, traded between $1.26 and $1.42 before closing at $1.29. It saw a turnover of 92.69 million shares worth $125.09 million.


An anonymous letter sent to the media accused the company's parent - the Guangdong arm of the Zhu Kuan Group - of owing more than US$2.5 million to Glencore International, one of the world's biggest zinc traders.


Executive director Yu Huaguo said the parent company was still investigating the matter and the group as a whole had not received any claims for unpaid debts.


The parent had many import and export clients and could not confirm if Glencore was among them, he said.


Glencore was unavailable for comment yesterday.


The letter was sent on Monday.


Cai Guangcheng, chairman of Zhu Kuan Development, said: 'The subject matter of the allegations does not relate to [Zhu Kuan Development] and its subsidiaries and hence does not have any impact on the group.' He said the letter was aimed at sabotaging the listing and the listed company would 'take all necessary steps, including appropriate legal action, to defend its reputation and to claim for damages for all defamatory acts against the group'.


Zhu Kuan, incorporated in January, is the holding company of the group's two prime tourism operations in Zhuhai - the Zhuhai Holiday Resort hotel and the New Yuanming Palace theme park.


Mr Cai said the company would continue to invest in Zhuhai and neighbouring areas.


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