No asset sale, but investors still expect Datang reorg

20 Dec 2007
00:00

Listed firm Datang Technology Ltd announced this it would not sell off "major assets", but expectations of a corporate reshuffle remain high.

sina.com

reported.

The company has not revealed just which assets were earmarked for sale. On November 16, the company said it would sell subsidiary Xian Datang for 250 million yuan, but it is unlikely this was included in the application to the CSRC.

Observers say that despite the setback it is hard to check the fervor for the stock because of the visible government support for the company. Earlier this month a People's Insurance Co. subsidiary invested 1.5 billion yuan into another Datang group member, Datang Mobile, demonstrating that the reorganisation of that asset had already begun.

With new strategic investors willing to come on board and TD industry commercialization continuing apace, the market believes finally that Datang reorganization is an idea whose time has come.

Many also believe the entry of Ping An Insurance Company and other strategic investors as Datang Technology's shareholders is just a matter of time.

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