News / Asia

Zoomlion Shares Jump After Newspaper Apologizes for Reports

FILE - A Zoomlion booth is seen during a communication technology and equipment expo in Beijing.
FILE - A Zoomlion booth is seen during a communication technology and equipment expo in Beijing.
Reuters
Shares of Zoomlion Heavy Industry Science and Technology Co Ltd surged on Monday after a newspaper admitted it had not thoroughly fact-checked disparaging reports on the Chinese state-owned construction equipment maker.
 
The apology from Guangzhou-based New Express came after its detained reporter, Chen Yongzhou, confessed to accepting payment in exchange for disparaging Zoomlion.
 
Zoomlion has been the subject of a string of Chinese media reports this year, including those from New Express, that have accused the company of fictitious sales and helped its Hong Kong-listed shares tumble nearly 40 percent for the year to date. It has vigorously denied the reports.
 
The controversy over Zoomlion also comes at a time of fierce rivalry with hometown competitor Sany Heavy Industry Co Ltd that has escalated into ugly public rows.
 
Zoomlion said in a July stock filing that it had been under an “all-round malicious attack by its competitor” since the fourth quarter of 2012 and has denied accusations by Sany of spying and attempting to kidnap the son of Sany's chairman.
 
Tensions between the country's media and its listed firms have also been increasingly troubled in recent years, with both sides seeing their integrity questioned by the other.
 
New Express had earlier made a front page plea for Chen's release - an unusual public rebuke amid a wider government crackdown on freedom of expression.
 
However, it admitted on Sunday that its monitoring of the manuscript had not been strict. “The incident has seriously damaged the credibility of the media,” it said.
 
On Monday, Zoomlion's Hong Kong and Shenzhen-listed shares were trading about 7 percent higher compared with largely flat markets.
 
Zoomlion bonds were steady after their recent rally, with some private banking clients looking to take profits on the news. Bonds due in 2017 were quoted wide at 102/104 and those due in 2022 were at 93/95. Neither of them are very liquid.
 
Traders said the bonds had already rallied from their June lows of 96 and 81 due to the lack of any follow up attacks following the last media report that had made allegations about false sales.
 
As long as there is no further negative news, debt investors will continue to get coupon for the time that they hold the bonds with the possibility of capital gains as well, industry insiders say.

You May Like

Video Drug Use Rises in Afghanistan

Ninety percent of world’s heroin comes from Afghanistan More

Here's Your Chance to Live in a Deserted Shopping Mall

About one-third of the 1200 enclosed malls in the US are dead or dying. Here's what's being done with them. More

Video NASA: Big Antarctica Ice Shelf Is Disintegrating

US space agency’s new study indicates Larsen B shelf could break up in just a few years More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Turkey's Main Opposition Party Hopes for Election Breakthroughi
X
May 22, 2015 10:23 AM
Turkey’s main opposition Republican People’s Party has sought an image change ahead of the June 7 general election. The move comes after suffering successive defeats at the hands of the Islamist-rooted AK Party, which has portrayed it as hostile to religion. Dorian Jones reports from the western city of Izmir.
Video

Video Turkey's Main Opposition Party Hopes for Election Breakthrough

Turkey’s main opposition Republican People’s Party has sought an image change ahead of the June 7 general election. The move comes after suffering successive defeats at the hands of the Islamist-rooted AK Party, which has portrayed it as hostile to religion. Dorian Jones reports from the western city of Izmir.
Video

Video Europe Follows US Lead in Tackling ‘Conflict Minerals’

Metals mined from conflict zones in places like the Democratic Republic of Congo are often sold by warlords to buy weapons. This week European lawmakers voted to force manufacturers to prove that their supply chains are not inadvertently fueling conflicts and human rights abuses. Henry Ridgwell reports from London.
Video

Video Class Tackles Questions of Race, Discrimination

Unrest in some U.S. cities is more than just a trending news item at Ladue Middle School in St. Louis, Missouri. As VOA’s Kane Farabaugh reports, it’s a focus of a multicultural studies class engaging students in wide-ranging discussions about racial tensions and police aggression.
Video

Video Mind-Controlled Prosthetics Are Getting Closer

Scientists and engineers are making substantial advances towards the ultimate goal in prosthetics – creation of limbs that can be controlled by the wearer’s mind. Thanks to sophisticated sensors capable of picking up the brain’s signals, an amputee in Iceland is literally bringing us one step closer to that goal. VOA’s George Putic reports.
Video

Video Afghan Economy Sinks As Foreign Troops Depart

As international troops prepare to leave Afghanistan, and many foreign aid groups follow, Afghans are grappling with how the exodus will affect the country's fragile economy. Ayesha Tanzeem reports from the Afghan capital, Kabul.
Video

Video Poverty, Ignorance Force Underage Girls Into Marriage

The recent marriage of a 17-year old Chechen girl to a local police chief who was 30 years older and already had a wife caused an outcry in Russia and beyond. The bride was reportedly forced to marry and her parents were intimidated into giving their consent. The union spotlighted yet again the plight of many underage girls in developing countries. Zlatica Hoke reports poverty, ignorance and fear are behind the practice, especially in Asia and Africa.
Video

Video South Korea Marks Gwangju Uprising Anniversary

South Korea this week marked the 35th anniversary of a protest that turned deadly. The Gwangju Uprising is credited with starting the country’s democratic revolution after it was violently quelled by South Korea’s former military rulers. But as Jason Strother reports, some observers worry that democracy has recently been eroded.
Video

Video California’s Water System Not Created To Handle Current Drought

The drought in California is moving into its fourth year. While the state's governor is mandating a reduction in urban water use, most of the water used in California is for agriculture. But both city dwellers and farmers are feeling the impact of the drought. Some experts say the state’s water system was not created to handle long periods of drought. Elizabeth Lee reports from Ventura County, an agricultural region just northwest of Los Angeles.
Video

Video How to Clone a Mammoth: The Science of De-Extinction

An international team of scientists has sequenced the complete genome of the woolly mammoth. Led by the Swedish Museum of Natural History in Stockholm, the work opens the door to recreate the huge herbivore, which last roamed the Earth 4,000 years ago. VOA’s Rosanne Skirble considers the science of de-extinction and its place on the planet
Video

Video Blind Boy Defines His Life with Music

Cole Moran was born blind. He also has cognitive delays and other birth defects. He has to learn everything by ear. Nevertheless, the 12-year-old has had an insatiable love for music since he was born. VOA’s June Soh introduces us to the young phenomenal harmonica player.

VOA Blogs