(Adds reason for suspension, details)
By Yimou Lee
HONG KONG May 27 Trading in shares of Chinese
construction equipment maker Zoomlion Heavy Industry Science and
Technology Co Ltd was suspended on Monday morning
pending the company's response to a mainland media report that
said its sales data was false.
The Hong Kong and Shenzhen-listed shares of Zoomlion should
resume trading after the company issues a clarification report,
an investor relations official told Reuters.
No further details were immediately available.
The mainland media report said a regional manager at
Zoomlion, which competes with Sany Heavy Industry Co Ltd
, was suspected of providing inaccurate sales figures
in central China for 2012.
China's heavy machinery sector slumped last year as
companies struggled with mounting inventory and low utilisation
rates after a glut in machinery spending spurred by China's
massive stimulus programme in 2008.
The world's second-largest economy grew last year at its
slowest pace since 1999 and demand for construction raw
materials has been lackluster so far this year.
Zoomlion's Hong Kong-listed stock was down 0.88 percent
prior to the suspension.
In April, Zoomlion reported a 71.7 percent drop in
first-quarter earnings to 591.8 million yuan ($96.52 million).
In January, shares of Zoomlion slid after the company denied
a report of irregular accounting. Hong Kong newspaper Ming Pao
Daily News reported then that it had received an anonymous
letter questioning Zoomlion's sales growth figures in the first
quarter of 2012 and alleging inflated revenues by including
potential orders as sales.
In a filing to the Hong Kong bourse at the time, Zoomlion
said all allegations relating to its financial information as
reported in the Ming Pao report were false, groundless and
Shares of the company have dropped more than 30 percent so
far this year, lagging a flat broader market.
($1 = 6.1316 Chinese yuan)
(Additional reporting by Twinnie Siu and Fang Yan; Editing by
Anne Marie Roantree)