China Gaoxian Fibre suspends trading amid audit issues

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By ANGELA TAN


China Gaoxian Fibre Fabric Holdings Ltd said on Thursday that it has called for a trading suspension in its shares after its auditors, Messrs Ernst & Young, could not verify nor confirm the bank balances in its subsidiaries for the financial year ended 31 December 2010.

The subsidiaries are namely Zhejiang Huagang Polyester Industrial Co., Ltd and Fujian New Huawei Fibre Dyeing Co., Ltd.

The company had halted trading in its shares from 22 March 2010.

But it will now request for the trading halt to be converted into a suspension of trading with effect from 9:00 a.m. of 25 March 2011.

Its audit committee has instructed the auditors to carry out an expanded scope of its audit and also met with the Executive Chairman and CEO, Cao Xiangbin, who has indicated that he will cooperate and assist, and will further instruct management to do the same.

In the meantime, the audit committee intends to use its best endeavours to take such practicable measures as may be necessary to safeguard the group's assets.