Liu Genshan, former chairman of Mexan Group (0022), is under investigation over accusations that he swindled HKD 4.3 bln, which has caused the company's stock to drop by 32% over two consecutive sessions. On 9 July, the stock set a new record low, with an opening price of HKD 0.084. At press time, it stood at HKD 0.087, equal to a 16% drop. Turnover volume had soared to 5.2 mln shares.

According to the Oriental Morning Post, Liu Genshan, also known as the Tycoon of the Shanghai Highway Building Industry, was arrested by relevant authorities a week ago. In 2003, Liu bought listed firm Asean Resources for HKD 1.13 bln in a backdoor listing and later renamed it Mexan. Liu failed to inject mainland highway assets into the company. In 2007 he sold his 73% stake in the company to Lun Zhiyan, the current chairman.


Source: www.aastock.com

Date: 9 Jul 2008

CN01/RL/MZ/BT/MM