A STATE-OWNED enterprise in Shenzhen has denied illegally selling a commercial property, leading to a loss of State assets worth 400 million yuan (US$61 million).
A post has been circulating on the Internet, claiming China Resources Shenzhen International Trust Investment Company, which is affiliated with State-owned China Resources and also known as Shenguotou, had sold a 25,000-square-meter commercial property to a private company for 4,500 yuan per square meter, much lower than the market price.
The post was allegedly by an employee of Shenguotou.
The post also claimed the trade did not go through open procedures.
Shenguotou responded Wednesday saying the post was an absolute distortion and the trade was conducted legally and with the approval from the parent company and the Shenzhen State Assets Bureau, Southern Metropolis Daily reported Thursday.
The bureau said no illegal practices were detected in the trade.
The commercial property, Zhongmin Times Square, was the largest and best office building on Sungang Road in Luohu District, the post said.
In addition, the private company that bought the property was established six months ago with registered capital of 10 million yuan, it said.
Shenguotou asked the DTZ land and real estate assessment company to value the property in September 2009. A selling price of about 95 million yuan was suggested, the paper said.
After negotiations with the buyer, the price was set at about 100 million yuan.
Nonetheless, the sale of State assets should be made public to attract a wider range of potential buyers, the paper quoted Xiao Wenquan, a lawyer with the Shenzhen branch of Beijing Weiheng Law Firm, as saying.(Li Hao)
