Guangzhou Daily Media Drops on Suspected Securities Rules BreachBloomberg News
Guangdong Guangzhou Daily Media Co., a newspaper publisher, fell in Shenzhen trading after it said it is being investigated by China’s securities regulator for suspected violations of trading rules.
The company, which publishes titles including the local government-controlled Guangzhou Daily newspaper, is cooperating with the China Securities Regulatory Commission and is operating normally, it said in a statement to the Shenzhen Stock Exchange late Wednesday.
Guangzhou Daily Media dropped as much as 7.1 percent to 7.72 yuan on Thursday, the biggest intraday fall in almost three months. The shares had plunged 48 percent this year through Wednesday, compared with the 11 percent drop in the Shenzhen Composite Index.
The company’s shares faces the risk of having its listing suspended by the exchange if it is found to have committed “major violations”, Guangzhou Daily Media said. It didn’t specify the nature of the probe. A representative from the Guangzhou city-based company’s securities affairs office declined to comment beyond the statement.
Guangzhou Daily Media listed in Shenzhen in 2007 and in 2010 underwent a major restructuring that was completed two years later, according to its website.
— With assistance by Jeanne Yang