SEC Form 4
FORM 4 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940
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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
1. Name and Address of Reporting Person*
Yang Xiang Dong

(Last) (First) (Middle)
C/O ABAX GLOBAL CAPITAL (HONG KONG) LTD.
S6708, 67F, 2 INTL FIN CTR, 8 FINANCE ST

(Street)
CENTRAL HONG KONG K3 SAR

(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
China Natural Gas, Inc. [ CHNG ]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
X Director X 10% Owner
Officer (give title below) Other (specify below)
3. Date of Earliest Transaction (Month/Day/Year)
04/12/2010
4. If Amendment, Date of Original Filed (Month/Day/Year)
6. Individual or Joint/Group Filing (Check Applicable Line)
Form filed by One Reporting Person
X Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 6. Date Exercisable and Expiration Date (Month/Day/Year) 7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Call Option (right to buy) $15 04/12/2010 S 129 (1) 09/18/2010 Common Stock 12,900 $0.1633 129 D (2)
Put Option (right to sell) $5 04/12/2010 P 129 (1) 09/18/2010 Common Stock 12,900 $0.2295 129 D (2)
1. Name and Address of Reporting Person*
Yang Xiang Dong

(Last) (First) (Middle)
C/O ABAX GLOBAL CAPITAL (HONG KONG) LTD.
S6708, 67F, 2 INTL FIN CTR, 8 FINANCE ST

(Street)
CENTRAL HONG KONG K3 SAR

(City) (State) (Zip)
1. Name and Address of Reporting Person*
Abax Lotus Ltd.

(Last) (First) (Middle)
C/O ABAX GLOBAL CAPITAL (HONG KONG) LTD.
S6708, 67F, 2 INTL FIN CTR, 8 FINANCE ST

(Street)
CENTRAL HONG KONG K3 SAR

(City) (State) (Zip)
1. Name and Address of Reporting Person*
Abax Nai Xin A Ltd.

(Last) (First) (Middle)
SUITE 6708/F, TWO INT'L. FINANCE CTR.
8 FINANCE STREET

(Street)
HONG KONG K3 0000000000

(City) (State) (Zip)
1. Name and Address of Reporting Person*
Abax Jade Ltd.

(Last) (First) (Middle)
SUITE 6708/F, TWO INT'L. FINANCE CTR.
8 FINANCE STREET

(Street)
HONG KONG K3 0000000000

(City) (State) (Zip)
1. Name and Address of Reporting Person*
Abax Global Opportunities Fund

(Last) (First) (Middle)
C/O ABAX GLOBAL CAPITAL (HONG KONG) LTD.
S6708, 67F, 2 INTL FIN CTR, 8 FINANCE ST

(Street)
CENTRAL HONG KONG K3 SAR

(City) (State) (Zip)
1. Name and Address of Reporting Person*
Abax Arhat Fund

(Last) (First) (Middle)
SUITE 6708/F, TWO INT'L. FINANCE CTR.
8 FINANCE STREET

(Street)
HONG KONG K3 0000000000

(City) (State) (Zip)
1. Name and Address of Reporting Person*
Abax Upland Fund LLC

(Last) (First) (Middle)
SUITE 6708/F, TWO INT'L. FINANCE CTR.
8 FINANCE STREET

(Street)
HONG KONG K3 0000000000

(City) (State) (Zip)
1. Name and Address of Reporting Person*
Abax Global Capital

(Last) (First) (Middle)
C/O ABAX GLOBAL CAPITAL (HONG KONG) LTD.
S6708, 67F, 2 INTL FIN CTR, 8 FINANCE ST

(Street)
CENTRAL HONG KONG K3 SAR

(City) (State) (Zip)
1. Name and Address of Reporting Person*
Abax Claremont Ltd.

(Last) (First) (Middle)
C/O ABAX GLOBAL CAPITAL (HONG KONG) LTD.
S6708, 67F, 2 INTL FIN CTR, 8 FINANCE ST

(Street)
CENTRAL HONG KONG K3 0000000000

(City) (State) (Zip)
Explanation of Responses:
1. The options are immediately exercisable.
2. Owned directly by Abax Lotus Ltd. See Remarks.
Remarks:
Remarks: Exhibit 99.1 (Joint Filer Information) is incorporated herein by reference. Abax Nai Xin A Ltd. and Abax Jade Ltd. are parties to an investor rights agreement with certain shareholders of the Issuer, and if they are deemed to be a "group" by virtue of such arrangement, such group may be deemed a greater than 10% owner. The Reporting Persons expressly disclaim beneficial ownership of the securities of the Issuer that are owned by such shareholders. Abax Global Opportunities Fund (the "Fund"), is the sole shareholder of each of Abax Lotus Ltd., Abax Nai Xin A Ltd. and Abax Jade Ltd.; Abax Arhat Fund ("Arhat") and Abax Upland Fund LLC ("Upland"), together own 100% of the Fund; Abax Global Capital (the "Arhat Shareholder"), is the managing shareholder of Arhat; Abax Claremont Ltd. (the "Upland Managing Member"), is the managing member of Upland; and Mr. Yang is the controlling member of the Arhat Shareholder and the Upland Managing Member. Each of the Reporting Persons disclaims beneficial ownership except to the extent of its or his pecuniary interest therein.
/s/ Xiang Dong Yang 05/28/2010
/s/ Xiang Dong Yang, Director of Abax Lotus Ltd. 05/28/2010
/s/ Xiang Dong Yang, Director of Abax Global Opportunities Fund 05/28/2010
/s/ Xiang Dong Yang, Director of Abax Arhat Fund 05/28/2010
/s/ Xiang Dong Yang, Director of Abax Upland Fund LLC 05/28/2010
/s/ Xiang Dong Yang, Director of Abax Global Capital 05/28/2010
/s/ Xiang Dong Yang, Director of Abax Claremont Ltd. 05/28/2010
** Signature of Reporting Person Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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