CHINA Shenhua Energy Co. and China Coal Energy Co., the nation’s two major coal producers, yesterday dismissed reports of a merger.

    The two companies, which are listed in Hong Kong and Shanghai, said neither they nor their parent companies have been informed of the matter of merger from government departments. Neither company has talked with other companies or departments about any merger, according to separate statements by the two companies filed with the Shanghai Stock Exchange.

    The Shanghai-listed shares of both companies surged by the daily limit of 10 percent Tuesday. In Hong Kong, China Shenhua rose more than 3.6 percent, while China Coal Energy gained nearly 7.5 percent. China Shenhua closed down 3.84 percent and China Coal Energy closed up 1.60 percent in Shanghai trading yesterday. China Shenhua dropped 3.91 percent and China Coal Energy was 4.44 percent down in Hong Kong yesterday.

    There were rumors last month that China was considering massive mergers and acquisitions of its biggest State-owned enterprises (SOEs) to prevent in-fighting and build industrial giants able to face global competitors. A total of 112 centrally-administered SOEs were said to likely be cut by more than half to 40.

    However, the State-owned Assets Supervision and Administration Commission later said reports about such massive mergers and acquisitions were “unverified.” (Xinhua)