COMMISSION ANNOUNCEMENTS - SEC SUSPENDS TRADING IN THE SECURITIES OF CHINA
May 19, 2006 (SECURITIES AND EXCHANGE COMMISSION RELEASE/ContentWorks via
COMTEX) -- The Commission announced the temporary suspension, pursuant to
Section 12(k) of the Securities Exchange Act of 1934 (the Exchange Act), of
trading in the securities of China Energy Savings Technology, Inc. (China
Energy), a Nevada corporation headquartered in Hong Kong, at 12:01 a.m. EDT on
May 19, 2006, and terminating at 11:59 p.m. EDT on June 2, 2006. The Commission
temporarily suspended trading due to concerns that certain China Energy
affiliates and shareholders may have unjustifiably relied upon Rule 144 of the
Securities Act of 1933 (Securities Act) in conducting an unlawful distribution
of securities that failed to comply with the resale restrictions of Rule 144 of
the Securities Act. The Commission is also concerned that China Energy may have
unlawfully relied upon Form S-8 of the Securities Act to issue unrestricted
securities. Questions also have arisen regarding the accuracy and completeness
of information contained in China Energy's public filings with the Commission
concerning, among other things, statements regarding the company's shareholder
base. The Commission cautions brokers, dealers, shareholders, and prospective
purchasers that they should carefully consider the foregoing information along
with all other currently available information and any information subsequently
issued by the company. Further, brokers and dealers should be alert to the fact
that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the
trading suspension, no quotation may be entered unless and until they have
strictly complied with all of the provisions of the rule. If any broker or
dealer has any questions as to whether or not he has complied with the rule, he
should not enter any quotation but immediately contact the staff in the Division
of Market Regulation, Office of Interpretation and Guidance, at (202) 551-5760.
If any broker or dealer is uncertain as to what is required by Rule 15c2-11, he
should refrain from entering quotations relating to China Energy's securities
until such time as he has familiarized himself with the rule and is certain that
all of its provisions have been met. If any broker or dealer enters any
quotation which is in violation of the rule, the Commission will consider the
need for prompt enforcement action. (Rel. 34-53839)
