China Blocks Changhong Sale to Microsoft, Investors

China's securities regulator blocked a plan by Sichuan Changhong Electric Co., the country's second- biggest television maker, to sell shares at a discount to investors including Microsoft Corp.

The China Securities Regulatory Commission rejected Changhong's proposal to sell new stock to investors, the Chinese company said in a statement to Shanghai's stock exchange today, without giving a reason.

Changhong's stock has doubled this year and last traded at 8.95 yuan, or 43 percent higher than the proposed in the sale plan. Microsoft, the world's biggest software maker, agreed to buy 15 million new shares for 94 million yuan ($13 million), Changhong said in June, after the Chinese company announced in April it would sell 400 million shares at 6.27 yuan each to 10 institutional investors.

The company had 1.9 billion shares outstanding as of Sept. 30, according to data compiled by Bloomberg.

Microsoft spokesman Jack Evans did not answer calls to his office and mobile phone. Changhong Vice President Tan Mingxian didn't answer telephone calls to his office.