HONG KONG -- Shanghai Lingang Holdings plunged Friday after denying reports that American electric-car maker Tesla plans to build a factory in an industrial park run by the company.
The free trade zone operator's Shanghai-listed shares went limit-down, sinking 9.98% to 23.34 yuan. American media outlet Bloomberg had said Tuesday that the city of Shanghai would grant permission as early as this week for the automaker to build a plant in a development zone run by Shanghai Lingang. The news sent the stock to its highest point in more than a year and a half Thursday.
Shanghai Lingang said Friday morning that it has not been in touch with Tesla and stressed that no agreement has been signed.
Shanghai Electric Group on Friday morning denied rumors of a planned joint venture with Tesla. Trading of the shares was halted Thursday while authorities review a major asset reorganization.