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Chinese power generator China Datang Corporation has denied media reports the regulator for state-owned enterprises has asked it to merge with the country’s largest coal producer.
Hong Kong-listed Datang International Power Generation said in a filing to the Hong Kong stock exchange that its controlling shareholder, China Datang Corporation said it had not received any news relating to the reported merger with China Shenhua. China Shenhua is the Hong Kong-listed subsidiary of Shenhua Group.
China Shenhua Energy reported net assets as of the end of December of Rmb576.7bn ($83bn) while Datang International reported its net assets at Rmb233.4bn.
Datang’s Hong Kong-listed shares jumped as much as 7.1 per cent on Thursday on the news, paring gains to be up 4.3 per cent at HK$2.21 a share. China Shenhua’s shares fell as much as 1.9 per cent, before pulling back to be down 1.6 per cent at HK$18.22 a share.
The benchmark Hang Seng index was down 0.4 per cent.