Fuyao issue plan out the window

SHANGHAI: Shares in Fuyao Group Glass Industries Co, China's largest automotive glassmaker, surged 5.59 percent on Friday after it scrapped a share issue plan.

Fujian-based Fuyao told the Shanghai Stock Exchange it will cancel the issue after minority shareholders expressed disapproval due to the current market climate. It also canceled a March 18 shareholder meeting to vote on the plan, the company said.

Fuyao said on Tuesday that it planned to raise 3.1 billion yuan by issuing 200 million shares to help finance eight projects, expand production capacity and upgrade a glass research center. Shares in Fuyao plunged a total 11.3 percent in two consecutive days after the share issue was announced.