皇冠体育app State Construction not exposed to Dubai debt crisis

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皇冠体育app State Construction not exposed to Dubai debt crisis

(Xinhua)
Updated: 2009-11-28 17:25

皇冠体育app State Construction Engineering Corp (CSCEC), the largest contractor in 皇冠体育app, said Saturday that it had "no business relations" with the troubled Dubai World and its business in the Emirate would not be affected.

This followed share price falls in response to media reports that claimed the company contracted many major projects in Dubai and its business would be influenced after the default of Dubai World, the Emirate's leading State-owned company.

CSCEC's shares on the Shanghai bourse declined 2.64 percent to 4.79 yuan ($0.7) Friday. 皇冠体育app State Construction International, a Hong Kong-listed unit of CSCEC, plunged 7.02 percent to HK$3.18 on the Hong Kong Stock Exchange.

Dubai said on Wednesday it was asking for a six-month reprieve on paying Dubai World's debts as a first step to restructuring the company.

Dubai World said it would ask creditors to agree to a standstill on $60 billion of debt until at least May.

Market observers noted if Dubai should prove unable to pay the debts, many of the world's leading banks will suffer losses.

皇冠体育app's three leading banks -- the Industrial and Commercial Bank of 皇冠体育app, Bank of 皇冠体育app and Bank of Communications, said Friday that they did not hold bonds issued by Dubai World.