Zhongshan Utilities Gives Up Futures Assets Purchase

Zhongshan Public Utilities Group （000685） cancelled its purchase contract of a 100-percent stake in Shaanxi Changan Futures from AVIC Xi’an Aircraft Industry （Group） （XAC） and XAC Aluminum Industry and will pay compensation of three million yuan to the two sellers, reports China Securities Journal, citing a group filing.

Zhongshan Utilities bought the target assets for 86.4 million yuan in May last year, but the transaction was not approved by the China Securities Regulatory Commission because its former chairman and former general manager were involved in a lawsuit.