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Mystery dampens Giordano

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Denise Tsang

Uncertainties about five mainland enterprises which bought a 5.3 per cent Giordano International stake for $196 million, curbed investor enthusiasm for the counter yesterday.

Sources said they were subsidiaries of mainland ministries - some highly secretive.

On Thursday, Giordano placed 5.3 per cent in new shares separately to China Haian Enterprise (Beijing) Group Corp, China Haian Enterprise Group Corp, Beijing Haian Aviation Service, Dalian Sanding Economy Trading and Tianxin Investment and Development.

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The sources said Dalian Sanding was controlled indirectly by the People's Liberation Army while Tianxin was part of China Aerospace Corp.

They indicated the Haian companies are also linked to the State Economic and Trade Commission and some financial bureaus.

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Giordano finished unchanged at $4.975 yesterday even though it jumped 4.52 per cent to $5.20 at one stage. Trading was comparatively quiet at 3.56 million shares.

Analysts said investors were left scratching their heads over who the Chinese parties were despite Giordano's announcement of their names.

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