China Zhongwang Review May Last Less Than a Month

Nov. 3 (Bloomberg) -- China Zhongwang Holdings Ltd. hired Ernst & Young to independently review its initial public offer prospectus after a newspaper alleged the aluminum-product maker falsified customer information. “We started the review two weeks ago,” Executive Director Lu Changqing said by phone from Hong Kong today. “The review will include customer interviews, evaluation and proof-seeking, which will probably take less than a month.” The Liaoning province-based company in April raised HK$9.8 billion ($1.3 billion)in Hong Kong in what was then the world’s largest initial public offering this year. The Economic Observer in a Sept. 14 article claimed the company made false claims about its customers list. The paper has apologized for the article, Zhongwang said Sept. 17. The company, China’s biggest maker of extruded aluminum products, yesterday said it hired an accounting firm to conduct a review to “provide independent assurance to shareholders.” The South China Morning Post reported earlier Zhongwang hired Ernst & Young, without citing anyone. Zhongwang dropped 2 percent to close at HK$7.29 in Hong Kong trading. --Xiao Yu. Editors: Tan Hwee Ann, Wendy Pugh. To contact the Bloomberg News Staff of this story: Xiao Yu in Beijing at yxiao@bloomberg.net