Shagang's Share-buying Proposal Approved

China Securities Regulatory Commission has approved the plan by Gaoxin Zhangtong, suspended share trading this May due to operating losses for three consecutive years, to issue 1.178 billion shares exclusively to Shagang Group for a 63.79 percent stake in Huaigang Special Steel owned by Shagang. Upon completion of the deal, Shagang will become a controlling shareholder (74.88 percent) of Zhantong and have a chance to set Huaigang for public listing.