Sinopec units suspended from trading

HONG KONG, May 29 (Reuters): Shares of two listed units of Chinese oil giant Sinopec Group - drilling equipment maker Kingdream and Sinopec Yizheng Chemical Fibre Co Ltd 1033.HK - were suspended from trading on Wednesday, pending announcements on transactions related to their parent.
Shanghai-based Yizheng said in a filing with the Hong Kong stock exchange it had received notice from Sinopec Group that the state-owned giant was "planning a material transaction related to the company."
Shenzhen-listed Kingdream made a similar stock exchange announcement, saying its shares were suspended from trading pending a notice about a significant matter from its ultimate controlling shareholder - Sinopec Group.
No further details were given. Neither Sinopec Group nor Yizheng and Kingdream could be reached for comment.
The suspension fuelled speculation among securities analysts that the two listed companies were planning asset restructuring, such as asset injections, involving Sinopec Group.
In its 2013 annual report, Kingdream said Sinopec Group had promised eventually to inject its "quality manufacturing assets" into the Shenzhen-listed company, making Kingdream Sinopec Group's hub for making oil-drilling equipment.