China's Zoomlion denies fraud allegations

Major Chinese construction equipment maker Zoomlion Heavy Industry Science & Technology (1157.HKG, 000157.SHE) filed documents with the Shenzhen Stock Exchange on Tuesday denying that it had falsified sales numbers, after a news report earlier in the week alleged the firm engaged in improper accounting practices, Bloomberg reported. Regulators halted trading in Zoomlion shares after Sina.com published an article from the newspaper Xin Kuai Bao that made the allegations. Zoomlion said it has applied to resume trading today and called the allegations “false, groundless and misleading.” This is the second time trading in Zoomlion shares has been halted after similar allegations of exaggerated sales were made in January.