HONG KONG - Hong Kong-listed shares in China South Locomotive and Rolling Stock Corp Ltd fell 2.5 percent on Thursday after the company denied a rumor that it was in merger talks with the order dominant State-owned railway equipment maker, Reuters reported.
Beijing was considering merging CSR with China North Locomotive and Rolling Stock Corp Ltd to lead a high-speed rail export drive, the Financial Times reported on Wednesday.
"China South Locomotive is not in talks or in studies for the possible merger with China North Locomotive," CSR said in a statement on its website. "The recent news relating to the merger rumor is unrelated to the company and we regret the spread of the rumor."
Shanghai-listed shares of China South Locomotive were down 1.8 percent after surging about 10 percent in the past two days. China North Locomotive, which climbed a combined 14 percent on Tuesday and Wednesday, eased 2 percent.
The merger of the two rail equipment manufacturers had became a hot topic amid the reorganization of State-owned companies, with the State-owned Assets Supervision and Administration Commission supporting the merger and the National Development and Reform Commission disagreeing, local media reported.
