Chinese Stocks Slip at Midday; Nezha Parent Hozon Names Restructuring Investor
On September 17, major Chinese equity indices edged lower at the midday break, with the Shanghai Composite down 0.36% and half-day turnover at RMB 1.25 trillion. Pharmaceutical and auto shares saw multiple limit-ups. Hozon New Energy, parent of Nezha Auto, confirmed Zhejiang Taiyi Shenglian as its restructuring investor, which will contribute RMB 3 billion for about 70.62% equity.
In the morning session on September 17, the Shanghai Composite Index fell 0.36%, the Shenzhen Component Index dropped 0.29%, the ChiNext Index declined 0.12%, and the STAR Composite Index slipped 0.18%. Half-day turnover on the A-share market reached RMB 1.25 trillion, an increase of RMB 80 billion from the previous trading day. Market hotspots rotated rapidly, with more than 3,100 stocks declining across the market.
By sector, pharmaceuticals were relatively strong, with Jinshi Yayao, Baihua Pharmaceutical and Nanhua Bio hitting the daily limit, while Nearshore Protein touched the 20% limit during the session. Auto shares moved higher, as Ankai Bus, Haima Automobile and Zotye Auto hit the limit. Chipmaker Zhongjing Technology posted a third consecutive limit-up. Agricultural stocks Jinjian Cereals and Dunhuang Seed also hit the limit. On the downside, precious metals retreated, with Shandong Gold, Hunan Silver and China Gold all falling.
Shanzi High-Tech hit the limit again, marking two limit-ups in four days. The restructuring investor for Hozon New Energy, parent of Nezha Auto, has been confirmed as Zhejiang Taiyi Shenglian Enterprise Management Partnership (Limited Partnership). Taiyi Shenglian plans to contribute RMB 3 billion to acquire approximately 70.62% equity in Hozon New Energy. Under the restructuring plan, RMB 1.167 billion will be used to repay relevant claims and bankruptcy expenses corresponding to assets intended to be retained, while the remaining RMB 1.833 billion will supplement Hozon New Energy's working capital. Taiyi Shenglian was established by Zhejiang Shanzi Holding Co. , Ltd. and Zhejiang Shanzi Yuxu Technology Co. , both ultimately controlled by Ye Ji, chairman of Shanzi High-Tech.