China Yuchai unit removed from US’ ‘unverified list’

GUANGXI Yuchai Machinery Company (GYMCL), a unit of Hong Leong Asia : H22 0%’s China Yuchai International, has been removed from the “unverified list” of the US Department of Commerce.

GYMCL’s business continues to operate normally with no major supply chain impact, China Yuchai announced in a Friday (Dec 16) bourse filing. The company engages in the manufacture, assembly, and sale of vehicle engines in China.

GYMCL was added to the “unverified list” back in October. Entities are added to the list when the US Bureau of Industry and Security is unable to complete a check on the legitimacy of the end use or end users of the final items, China Yuchai had said back then. This would be for reasons outside the US government’s control.

Being added to the list does not mean that US exporters cannot engage with the affected entity, China Yuchai noted. Rather, exporters would have to conduct additional due diligence to verify the end use or end users. GYMCL therefore continued normal operations.

Shares of Hong Leong Asia closed flat at S$0.66 on Friday. New York-listed China Yuchai opened at US$7.60, down 0.8 per cent.