Chaoda dumping Asian Citrus shares

Selling out 100 million shares @ $4.66 because ...

"In view of the market volatility, the Directors consider that it is in the best interests of the

shareholders of the Company to carry out the disposal of the Placing Shares. The maximum

gross proceeds from the Placing will be approximately HK$466 million and the net proceeds

from the Placing will be approximately HK$461 million, which will be used for general

working capital of the Group.

The Company estimates to recognise a loss of approximately HK$91 million in the accounts

of the Company taking into account the net proceeds to be received immediately upon

completion of the Placing. "

The reason for selling is because of "market volatility"??!! Selling out at near all time lows?

Chaoda reported (end 2010) having ~$2b in cash and supposedly generates ~$3.5b cash from operations is raising cash for general working capital? They have another ~66m shares of Asian Citrus left at $4.66/share (will be much less after tomorrow) is worth another ~$300m.

$2b in cash + $750m in Asian Citrus shares = $2.75b

Market Cap of Chaoda is $3.62b and not much debt.

Smells like desperate cash raising to fill in some holes..