‘Suspend’ Share Trading, Holdings Company Pleads
Chinese holdings company Gaoxian Fibre Fabric has called for a suspension in its share trading following dubious bank balances in its subsidiaries as reported by auditors from Ernst & Young.
Following the call to halt its share trading way back in March 2010, China Gaoxian Fibre Fabric Holdings Ltd moves to bring the downtime to a longer period by suspending the trade of its shares effective March 25.
The move of the holdings company stems from barely confirmable balances in the bank account of its subsidiaries Zhejiang Huagang Polyester Industrial Co., Ltd and Fujian New Huawei Fibre Dyeing Co., Ltd., for the fiscal year ended December 31, 2010.
Meanwhile, the holdings company’s audit committee has pressed on the auditors from Ernst & Young to broaden the coverage of its internal audit. Cao Xiangbin, chairman and CEO of the holdings company, expressed his willingness to cooperate with the investigation. The rest of the management team have been advised to lend their hands to Ernst & Young.
The extended investigation is expected to protect the assets of the holdings company.