Zhejiang Expressway to quit Jiaxing-Shaoxing expressway project

Nov. 28, 2008 (China Knowledge) - Zhejiang Expressway Co Ltd<576>, an infrastructure company principally engaged in investing in, developing and operating high-grade roads, announced on Thursday it has decided to quit the Jiaxing-Shaoxing Expressway project due to changes in government policy, the Shanghai Securities News reported.

The company would not participate in the development and management of the Jiaxing-Shaoxing Expressway, as the eight-lane project has been changed into a government-owned expressway from the previously planned commercial one, Zhejiang Expressway Co said in a filing with the Hong Kong Stock Exchange.

Zhejiang Expressway Co has invested RMB 35 million in the project so far, which is expected to be repaid to the company with a total interest of RMB 8.3748 million today.

In December 2004, the company said in a statement that it planned to invest RMB 1.15 billion to hold 35% stake in the Jiaxing-Shaoxing Expressway project.

On Thursday, shares of Zhejiang Expressway Co rose 1.96% to close at HK$3.65.