China Development Bank Corp., the state-owned lender charged with strengthening the country’s competitiveness, is providing more than $1 billion to help smaller companies leave the U.S. stock market.
The nation’s biggest policy lender has offered funding so Fushi Copperweld Inc., a Beijing-based wire maker listed on the Nasdaq Stock Market, can buy back its shares from the public, the company said last month. China TransInfo Technology Corp. said June 8 it would drop its U.S. listing with CDB financing. The bank has provided more funding than any other lender to help the nation’s companies exit the world’s biggest equity market, according to Roth Capital Partners, which specializes in emerging markets.
Sino-Forest, the tree grower accused of fraud by Muddy Waters, filed for bankruptcy in March after denying the allegations.
Fushi Copperweld’s shares have gained 12.3 percent to $8.95 since the company said on June 28 that it agreed to be bought for $9.50 a share. Its stock had fallen to a low in April at $5.81 as Muddy Waters accused the Beijing-based manufacturer of overstating production and possibly falsifying financial statements in a narrated slide show. The manufacturer “presents a high risk of fraud,” and overstated production at one of its factories by almost 13-fold, Muddy Waters said.
A person who answered the company’s main line yesterday said no one was immediately available to comment.