Fuyao Glass Group Industries Co Ltd, the world“s fourth largest autoglass manufacturer, said its board has decided to drop a plan to raise CNY 3.14 billion through the issue of new shares after consu…
Fuyao Glass Group Industries Co Ltd, the world“s fourth largest autoglass manufacturer, said its board has decided to drop a plan to raise CNY 3.14 billion through the issue of new shares after consulting shareholders. In a statement filed with the Shanghai Stock Exchange, the company said feedback from some shareholders on the share issue was negative. The Shanghai composite index has fallen by about 15% since the Ping An Insurance announcement of a major share issue on 21 January 2008. Investors fear the Ping An fund-raising exercise, as well as those of other firms, will drain significant liquidity from the market. The China Securities Regulatory Commission issued a statement in the week ending 1 March 2008 warning that listed companies should consider timing and possible investor responses when putting together fund-raising plans.