Brilliance suffers sharp fall

Minibus maker Brilliance China Automotive Holdings plunged 16.12 per cent yesterday amid a flood of rumours concerning the company's future.

The stock fell 20 HK cents to close at $1.04, its lowest level since September last year, as speculation about boardroom turmoil sent investors running for the exits.

Earlier this month Brilliance denied newspaper reports of an investigation into allegations of asset-stripping by the firm's chairman Yang Rong and other senior executives.

The company did not answer further inquiries by the South China Morning Post yesterday.

Also swirling through the marketplace yesterday were rumours that the stock had fallen following margin calls as well as speculation that the company might be taken over by the state to pave way for a merger with other domestic car-makers, also the subject of recent press reports.

Brilliance shares have fallen 27.27 per cent this year.