Hong Leong Asia subsidiary director detained by China, stock price once plummeted 21.8% | Lianhe Zaobao

The news that a director of Hong Leong Asia's U.S.-listed subsidiary has been detained by Chinese authorities caused Hong Leong Asia's stock price to plummet by 21.8% to HKD 1.97 in early trading on Tuesday (October 21), with the decline later narrowing to 12.30% by the close of trading. According to a disclosure by Hong Leong Asia, which is listed on the main board of the Singapore Exchange, its subsidiary China Yuchai International, listed on the New York Stock Exchange, announced that its director Wu Qiwei and former chief accountant Qin Xiaohong of Guangxi Yuchai Machinery Company have been detained by Chinese authorities. Wu Qiwei is also the president of Guangxi Yuchai Machinery Group. As of the announcement date, the reasons for their detention remain unclear. China Yuchai International stated that the business and affairs of Guangxi Yuchai Machinery continue to be led by the chairman of the subsidiary's board, Li Hanyang. The company's daily operations have not been interrupted. During Wu Qiwei's absence, Vice President Chen Hai is assisting in fulfilling the presidential duties. According to Chinese media reports, in July this year, Yan Ping, the former deputy secretary of the party committee and chairman of Guangxi Yuchai Machinery, was suspected of serious violations of discipline and law and is undergoing disciplinary review and investigation by the regional discipline inspection and supervision commission. In August this year, China Yuchai International revealed that one of its indirect subsidiaries is considering listing on a foreign stock exchange, and preparations for the listing have already begun. This potential listing is in the preliminary stages and does not guarantee that the subsidiary will definitely go public. The name of the potential listing subsidiary has not been disclosed. Further Reading Urban Development "Power Grab" Impact on Hong Leong Asia's Stock Price, Guo Lingbo Increases Holdings for Two Consecutive Days Hong Leong Asia's Net Profit Increased by 12% in the Second Half of the Year, Plans to Distribute a Year-End Dividend of 3 Cents per Share Hong Leong Asia is a player in the transportation and construction materials industry, holding a 48.7% stake in China Yuchai International. Headquartered in Singapore, China Yuchai International holds a 76.4% stake in its main subsidiary, Guangxi Yuchai Machinery Company. China Yuchai International is a holding company, and its subsidiary Guangxi Yuchai Machinery is a company based in China that produces, assembles, and distributes diesel engines for various vehicles, including trucks, buses, and cars, as well as for construction, agriculture, marine, and power generation equipment Most of its sales come from the Chinese market. China Yuchai International Company reported a net profit growth of 52.2% year-on-year to RMB 365.8 million in the first half of fiscal year 2025, with revenue increasing by 34.0% year-on-year to RMB 13.8 billion, and a gross profit margin of 13.3%. In Singapore, Hong Leong Asia's stock price fell 12.30% on Tuesday, closing at SGD 2.21, but has still risen over 130% this year. In the United States, China Yuchai International's stock price plummeted 18% on Monday, narrowing the decline to 4.55% by the close, ending at USD 33.36, with an increase of over 230% this year