Zoomlion shares rise after reporter admits to writing false articles

The shares of Zoomlion Heavy Industry Science and Technology rallied yesterday, after a reporter confessed on mainland television that he had accepted bribes to write negative reports about the machinery maker.

Despite the stock's recovery, some analysts still expressed concern about the company, pointing to the large amount of money in unpaid bills its customers owe the company.

Zoomlion's Hong Kong share price rose 9.6 per cent to an intraday high of HK$7.34 yesterday before closing at HK$7.02, up 4.8 per cent from Friday. About 28.58 million shares changed hands in Hong Kong in the heaviest trading in weeks. On the Shenzhen stock exchange, 187.96 million Zoomlion shares changed hands.

Zoomlion's Shenzhen share price rose 9.4 per cent to 5.96 yuan yesterday.

On Saturday, Chen Yongzhou , a reporter with New Express, a Guangzhou newspaper, confessed on state television that he accepted bribes to write unverified articles critical of Zoomlion, in which the state owns a substantial minority stake. In September, Zoomlion filed a report with mainland police accusing New Express of defamation, investment bank RHB OSK said in a report.

Watch: Detained Chinese journalist confesses on China state TV