Guangdong Guangzhou Daily Media, a newspaper publisher and advertisements producer, is under investigation by China’s securities regulator for suspected violations of trading rules.
The company, which publishes titles including the Guangzhou Daily newspaper, is cooperating with investigations by the China Securities Regulatory Commission and is operating normally, it said in a statement to the Shenzhen Stock Exchange after the close of trading.
The company’s shares faces the risk of being removed from trading by the exchange if it is found to have committed “major violations”, Guangzhou Daily Media said in Wednesday’s statement. It did not specify the nature of the probe.
Calls to the Guangzhou city-based company’s securities affairs office outside of office hours were not answered.
Guangzhou Daily Media’s shares have plunged 48 per cent so far this year, compared with the 11 per cent drop in the Shenzhen Composite Index.
Its former president Dai Yuqing was sentenced to 11 years in jail for taking 2.5 million yuan (HK$2.9 million) in bribes, the China News Service reported on its website in April last year.