Barclays Research lowered the rating of China Rongsheng Heavy Industries (1101.HK) from neutral to reduced holdings, and lowered the target price of the stock from HK$2.40 to HK$1.06, a reduction of more than 50%. Earlier, there was news that the company's chairman Zhang Zhirong was investigated by the US for suspected insider trading. The bank believes that the above news may have a negative impact on the company's core business. The bank said that at a time when competition for new orders is intensifying due to weak demand, the news may weaken China's Rongsheng Heavy Industries ability to receive orders. The bank said that the above developments have also caused outsiders to worry that Zhang Zhirong, who is the controlling shareholder of the company, may reduce his holdings of the company's shares. The bank also said that earlier the market was also concerned about the credibility of the company's management. Coupled with the current US survey, this may cause many institutional investors to wait and see the stock. China Rongsheng Heavy Industries has issued an announcement stating that the company's business is operating normally and has not been affected by the investigation. The stock closed down 16% to HK$1.17 on Monday, hitting its lowest closing price since listing in 2010.