Steel­maker sued for rare porce­lain trans­ac­tion

China Daily (Canada) - - BUSINESS -

Spe­cialty steel­maker China Gerui Ad­vanced Ma­te­ri­als Group Ltd has been sued by an in­vestor for spend­ing more than $230 mil­lion on an­tique porce­lain and the share price de­cline that fol­lowed. Chief Ex­ec­u­tive Of­fi­cerMing­wang Lu an­nounced the pur­chase of the col­lec­tion, which he de­scribed as a rare set dat­ing back to the SongDy­nasty (960-1279), as a good in­vest­ment. An in­vestor who sued the company in fed­eral court in­NewYork onWed­nes­day did not see it that way. When the company dis­closed Sept 4 that it spent $234 mil­lion of un­re­stricted cash re­serves to ac­quire a col­lec­tion that it val­ued at $905 mil­lion, China Gerui did not re­veal who it bought the porce­lain from or where it is stored, whether it is in­sured or even whether it has been au­then­ti­cated, ac­cord­ing to the com­plaint filed by share­holder Aram Pehli­va­nian.

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