Shares of fashion retailer Giordano International will be suspended from trading today after rumours of a stalled joint venture in China triggered a 17.88 per cent fall in the counter yesterday.
The company was the market's biggest loser, sinking from $6.15 to $5.05, taking losses in the past two days to 23.26 per cent.
Giordano said yesterday it had been reviewing its operations in China and intended to make an announcement soon to clarify the situation.
It said the announcement would 'enable shareholders and the public to appraise the position of the company' and added trading would be suspended until its publication.
Brokers said rumours that China authorities were concerned former chairman Jimmy Lai Chee-ying might still have influence over the company had delayed the approval of the joint venture.
The venture, which it was hoped would pave the way for Giordano to open 10 stores in Beijing and Shanghai, was regarded by investors as an indication its mainland problems were over.
