UPDATE 1-HK's CITIC Pacific shares suspended


(Adds broker comments)

HONG KONG, Oct 31 (Reuters) - Trading in shares of Beijing-backed conglomerate CITIC Pacific was suspended on Friday, pending a price-sensitive announcement, as a media report said authorities in China were investigating the company's unauthorised currency trading.

Hong Kong's Securities and Futures Commission (SFC) said this month that a formal investigation had been launched into the affairs of CITIC Pacific, which shocked the market by announcing a potential loss of $2 billion from the trading. [ID:nHKG341210].

China's Securities Regulatory Commission and Hong Kong's SFC were jointly investigating the case and results of the investigation would be released soon, the Shanghai-based China Business News quoted a senior official of the company's parent, CITIC Group, as saying.

Officials at the steel-to-property conglomerate would not comment on the suspension or the media report.

CITIC Pacific, which owns 17.5 percent of dominant Hong Kong airline Cathay Pacific Airways , is headed by tycoon Larry Yung, who once topped the Forbes magazine list as mainland China's richest person.

Two CITIC Pacific directors resigned and the head of the company's finance department, Frances Yung, who is a daughter of Larry Yung, was demoted this month.

CITIC Pacific's stock jumped 21 percent on Friday morning before trading was suspended. But it has lost nearly 60 percent of its market value in the past two weeks after the foreign trading loss was reported. (Reporting by Alison Leung; Editing by Anne Marie Roantree)



Follow Us

Sponsored Introduction Continue on to (or wait seconds) ×