China

Aluminum Corp. of China’s Trading Halt Reportedly Not Related to Sinosteel Engineering’s Halt

Summary:

  • Insiders indicate that the trading halts for Aluminum Corporation of China (601600.SS) and Sinosteel Engineering (000928.SZ) are not related to each other, according to Caixin.
  • Both companies have declined to comment.

Why It Matters:

  • Both Aluminum Corporation of China and Sinosteel Engineering announced trading halts for their shares on September 12. Such news came after the merger between China Guodian Corporation and Shenhua Group and, consequently, the market is expecting a similar deal between the two state-owned companies.
  • Caixin quotes inside sources when saying that Sinosteel Engineering’s halt is related to the equity swap business and Aluminum Corporation of China’s trading halt is related to consolidation in the mining sector. The two deals are not related to each other.
  • Sinosteel Engineering is a large state-owned steel company in China which has suffered poor performance. State-owned banks have been approached with the government’s guidance and there has been an equity for debt swap to support the operations of Sinosteel Engineering.