HONG KONG, April 18 (Reuters) - China Hongqiao Group Limited
said on Tuesday it has terminated plans to subscript
non-public A shares of Loften Environmental Technology Co
and sell Loften the entire equity interest in
Innovative Metal, as the plans did not comply with regulatory
Chinese regulators have turned their sights on controlling
risks in financial markets as speculative activity and leverage
in the economy rise, with the securities regulator vowing to
clear out "abnormal phenomena" from capital markets.
Hongqiao announced in December its subsidiary has entered
into an agreement with Loften to subscript up to 1.6 million
non-public A shares, representing 63.41 percent of the enlarged
issued share capital, at 6.23 yuan per share, after buying 28.2
percent issued shares.
The aluminium company also agreed to sell Innovative Metal
to Loften for 7 billion yuan ($1.02 billion).
Hongqiao said the acquisitions did not comply with private
placement rules and the new regulatory requirements issued by
China Securities Regulatory Commission in February.
"After considering the condition of domestic capital market,
the new changes of regulatory policies and based on the
communication with relevant domestic regulatory authorities,
Shandong Hongtuo and Loften entered into the Termination
Agreement to terminate the Acquisitions," it said in a
($1 = 6.8800 Chinese yuan renminbi)
(Reporting by Clare Jim; Editing by Stephen Coates)