China's Rongsheng Heavy Industries' shares tumbled after US Securities & Exchange Commission accusation
Shares of China Rongsheng Heavy Industries tumbled 17 percent to a record low yesterday after its chairman Zhang Zhirong was accused of insider trading by the US Securities and Exchange Commission, reports the 'Hong Kong Standard'.
The SEC accused Hong Kong-based Well Advantage - solely owned by Zhang - of trading illegally before an announcement by CNOOC (0883) that it would buy Nexen for US$15.1-billion (HK$117.78-billion).
In related news Rongsheng said it expects net profits in the first half to have fallen sharply due to a declining industry. Analysts expect whole-year profits to slide by 25-30 percent from 2011.