HK-listed China ZhengTong Auto drops on discounted share sale

China Zhengtong Auto Services Holdings

16/07/2020 04:53

** Auto sales and services group China ZhengTong Auto
Services Holdings Ltd  1728.HK  drops 18.6% to HK$1.05, the
lowest since June 9
    ** Stock heads for its worst session since listing in Dec
2010; Second-biggest percentage decliner on Hong Kong bourse
    ** Co plans HK$267.3 mln ($34.5 mln) share sale of 245.2 mln
new shares to controlling shareholder Joy Capital Holdings Ltd
at HK$1.09 each  urn:newsml:reuters.com:*:nFWN2EM135
    ** Issue price represents discount of 15.5% to stock's
Wednesday close of HK$1.29 
    ** Brokers say discounted share sale and weak market
sentiment pulled down co's stock
    ** The Hang Seng China enterprises index  .HSCE  falls
1.5%and the benchmark index  .HSI  drops 1.2%
    ** Joy Capital to buy the new shares after selling the same
number of existing shares at the same price to third-party
investors
    ** By last close, the stock had fallen 53.6% this year



($1 = 7.7521 Hong Kong dollars)

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)