STOCKWATCH: Easyknit Intl higher on talk of China metal/alloy company purchase

HONG KONG (AFX-ASIA) - Easyknit International shares were higher this morning, on speculation that the company will purchase a state-owned metal and alloy company in North Western China.

	    Based on market speculation, the metal and alloy company is said to be receiving a substantial number of new shares in Easyknit and use Easyknit as a back-door listing vechicle on the Stock Exchange of Hong Kong, they said.

	    At 11:58 am, Easyknit International was up 0.065 hkd or 18.57 pct at 0.415, on trade of 36.53 mln shares. The Hang Seng Index was up 23.78 points at 

13,282.58.

	    A dealer from a regional brokerage said the upturn of Easyknit this morning was purely rumour-driven.

	    "The company was rumoured to be buying a state-owned metal and alloy company in China," he said.

	    "If market rumours are correct, Easyknit will be used as a back door listing vehicle for the state-owned enterprise, which will receive new shares in Easyknit," he said.

	    Easyknit issued a statement this morning, saying that the company is unaware of any reason for the increase in its share price and the volume of its shares traded.

Related stock : (NIL)