Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
Yang Xiang Dong
  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)
(Last)
(First)
(Middle)
C/O ABAX GLOBAL CAPITAL (HONG KONG) LTD., S6708, 67F, 2 INTL FIN CTR, 8 FINANCE ST
3. Date of Earliest Transaction (Month/Day/Year)
04/12/2010
(Street)

CENTRAL HONG KONG, K3 SAR
4. If Amendment, Date 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
(City)
(State)
(Zip)
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

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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 Underlying Securities
(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 of Derivative Security: 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)  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Yang Xiang Dong
C/O ABAX GLOBAL CAPITAL (HONG KONG) LTD.
S6708, 67F, 2 INTL FIN CTR, 8 FINANCE ST
CENTRAL HONG KONG, K3 SAR
  X   X    
Abax Lotus Ltd.
C/O ABAX GLOBAL CAPITAL (HONG KONG) LTD.
S6708, 67F, 2 INTL FIN CTR, 8 FINANCE ST
CENTRAL HONG KONG, K3 SAR
    X    
Abax Nai Xin A Ltd.
SUITE 6708/F, TWO INT'L. FINANCE CTR.
8 FINANCE STREET
HONG KONG, K3 0000000000
    X    
Abax Jade Ltd.
SUITE 6708/F, TWO INT'L. FINANCE CTR.
8 FINANCE STREET
HONG KONG, K3 0000000000
    X    
Abax Global Opportunities Fund
C/O ABAX GLOBAL CAPITAL (HONG KONG) LTD.
S6708, 67F, 2 INTL FIN CTR, 8 FINANCE ST
CENTRAL HONG KONG, K3 SAR
    X    
Abax Arhat Fund
SUITE 6708/F, TWO INT'L. FINANCE CTR.
8 FINANCE STREET
HONG KONG, K3 0000000000
    X    
Abax Upland Fund LLC
SUITE 6708/F, TWO INT'L. FINANCE CTR.
8 FINANCE STREET
HONG KONG, K3 0000000000
    X    
Abax Global Capital
C/O ABAX GLOBAL CAPITAL (HONG KONG) LTD.
S6708, 67F, 2 INTL FIN CTR, 8 FINANCE ST
CENTRAL HONG KONG, K3 SAR
    X    
Abax Claremont Ltd.
C/O ABAX GLOBAL CAPITAL (HONG KONG) LTD.
S6708, 67F, 2 INTL FIN CTR, 8 FINANCE ST
CENTRAL HONG KONG, K3 0000000000
    X    

Signatures

 /s/ Xiang Dong Yang   05/28/2010
**Signature of Reporting Person Date

 /s/ Xiang Dong Yang, Director of Abax Lotus Ltd.   05/28/2010
**Signature of Reporting Person Date

 /s/ Xiang Dong Yang, Director of Abax Global Opportunities Fund   05/28/2010
**Signature of Reporting Person Date

 /s/ Xiang Dong Yang, Director of Abax Arhat Fund   05/28/2010
**Signature of Reporting Person Date

 /s/ Xiang Dong Yang, Director of Abax Upland Fund LLC   05/28/2010
**Signature of Reporting Person Date

 /s/ Xiang Dong Yang, Director of Abax Global Capital   05/28/2010
**Signature of Reporting Person Date

 /s/ Xiang Dong Yang, Director of Abax Claremont Ltd.   05/28/2010
**Signature of Reporting Person Date

Explanation of Responses:

* 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).
(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.

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