China's top trainmakers, China CNR and CSR Corp, are planning to merge as the country aims to promote its high-speed train technology abroad.
The state-owned firms halted trading on Monday and subsequently issued a statement saying they would resolve "major issues" as soon as possible. Trading would resume within five working days, they added.
According to China Securities Journal, the firms had set up working groups to discuss the integration, and that investment bank China International Capital Corp had been appointed to oversee the reorganization.
The two companies are both listed in Shanghai and Hong Kong, with a combined market value of about $30 billion based on the closed price before trading suspension.
Source: China Daily