Singapore: Shares in Chinese private shipbuilder Yangzijiang Shipbuilding tumbled dramatically today on the Singapore Exchange.
The drop follows a news report this website ran on Tuesday.
Tianjin Guoheng Railway Holding, a listed railway company in China, announced earlier this week that it has reported several illegal activities of the company’s largest shareholder, Ren Yuanlin, to authorities.
Ren, who controls several companies including Singapore-listed Yangzijiang, made an acquisition of 12.11% equity in Tianjin Guoheng in January this year through one of his controlling companies and became the largest shareholder of Tianjin Guoheng.
In an update, Tianjin Guoheng announced yesterday that it plans to hire Beijing W&H law firm to represent the company to report further alleged illegal activities regarding the company’s largest shareholder, Taixing Liyuan, a company controlled by Ren. Tianjin Gouheng is looking to request compensation.
As of 4.20pm shares in Yangzijiang had fallen 10.5 cents, down 9.292% to S$1.025 with 40 minutes to go before the Singapore Exchange closes for the week. Some 61m shares were traded today.
Yangzijiang has not commented on Tianjin Guoheng’s allegations. [30/05/14]