SouthGobi CEO arrested as concern over Hong Kong's stocks rises
HONG KONG – Mongolian coal producer SouthGobi Resources’ CEO was detained in China as a suspect in a fraudulent loan case, the latest Hong Kong-listed company linked to allegations of misconduct.
SouthGobi shares fell as much as 13.6%, the most in four months, to the lowest level in more than a year on the Hong Kong stock exchange. Aminbuhe Aminbuhe, who is also the firm’s chairman, was arrested on October 11 and is being held at Rizhao City Detention Center, the company said in a statement on Friday. Bing Wang will be interim CEO in his absence.
The arrest coincides with rising concern over regulation of securities listed in Hong Kong. China Huishan Dairy Holdings last week said its main units probably had a negative net worth, after its stock plunged 85% on a single day in March.
SouthGobi, which is also listed on the Toronto stock exchange, owns and operates the Ovoot Tolgoi metallurgical coal mine about 40 km from the Shivee Khuren-Ceke crossing at the Mongolia-China border. It will initiate an internal investigation into the charges against Aminbuhe and any connection to the company, continuing normal business in the interim period, it said Friday.
Shares declined as much as 21c to $HK1.33, the biggest intraday drop since July 8 and the lowest since September 2016. They traded at $1.50 at 11:53 a.m. in Hong Kong and are down 13% this year.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation