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Shares outperform despite scandal

By Hui Ching-hoo (China Daily)
Updated: 2006-09-08 09:40

HONG KONG: Shares in Shanghai Electric, the mainland's largest power equipment maker, rose 0.78 per cent yesterday after they resumed trading in Hong Kong, showing restored investor confidence in the scandal-ridden firm.

Shanghai Electric shares dropped 3.92 per cent to HK$2.45 (31US cents) in the morning, but edged up to close at HK$2.57 (33 US cents), up 0.78 per cent.

A visitor at the exhibition booth of Shanghai Electric at a recent trade expo in Shanghai. [China Daily]

They outperformed the blue-chip Hang Seng Index, which dropped 0.94 per cent to 17,096 points.

The shares were suspended after the detention of the company's former chairman Wang Chengming for alleged corruption last month.

Wang was detained on August 14 on suspicion of violating Communist Party regulations.

His detention came after two of the company's other senior officers, Zhang Rongkun and Han Guozhang, were questioned in a graft investigation by the Party in July.