Yesterday's widely reported news that Datang Group might receive CNY4 billion support from China's State-owned Assets Supervision and Administration Commission has been denied by Datang.
Datang's just-released bulletin states that the company is doing well and it sees no reason for additional cash infusions. The company reminds investors not to be speculative and that Datang will release all of its financials and information in due course.
The company added that they made the emergency bulletin following rules issued by the Shanghai Stock Exchange. Datang says that "China Security" and "Shanghai Security" are the only two appointed newspapers — including their websites — that should disclose their information, so they remind investors to not risk their money by listening to other information sources.
Shanghai's stock market dropped by 6% this week after Cheng Siwei, vice chairman of China's National People's Congress, worried investors earlier this month when he said 70% of the Shanghai market's listed companies will probably lose value. This set off a reaction around the world, with most markets dropping at their worst rates in almost seven years.