China Travel Scraps Spin-Off, Acquisition Plans
China Travel International said on Friday it has scrapped indefinitely plans to spin off its hotel operations and acquire a project due to market conditions.
"In view of the unforeseen adverse market condition and current continuing market volatility, the board considers that it is not the best time to proceed with the proposed spin-off and the proposed acquisition," China Travel said in a filing to the Hong Kong stock exchange.
In July, China Travel said it was considering a spin-off for its hotel operations and that it was also in talks to buy Qingdao Ocean Spring project in Jiangsu province.
The Hong Kong stock market, like other global bourses, has been experiencing volatility due to uncertainties in the world's economy from Europe and the United States' lingering debt woes.