Parent Company To Reduce Holdings Of Changjiu Biochemical


September 2 -- Jiangxi Changjiu Biochemical Industry (600228) disclosed that its parent company, Jiangxi Changjiu Chemical Group, will cut its holdings in the company by 36 million shares over the next four months, reports Shanghai Securities News. That will leave the parent group with at least a 25.53-percent stake in Changjiu.

Changjiu recorded two consecutive years of losses and was warned of a delisting risk in April this year. It forecasted full year losses for 2011. Still, its share price jumped 76 percent to a peak of 13.81 yuan per share on August 8, reportedly due to markets’ expectation of restructuring.

The parent group’s previous reduction in Changjiu Biochemical equity topped five percent, meaning it had to be disclosed within three days as required by the China Securities Regulatory Commission. But in waiting 18 months to disclose the equity cut, it has committed a serious breach of securities regulations


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