Shares of China Everbright International yesterday made a smart recovery after the company distanced itself from former Chongqing party chief Bo Xilai's brother, who stepped down from the board on Wednesday.
The stock jumped 8.2 per cent to close at HK$3.57 in heavy trading in a market that rose 0.79 per cent.
The stock has been battered for days following media reports that Bo's brother, Bo Xiyong, also known as Li Xueming, was a director and vice-chairman of the company.
The rebound erased most of the stock's losses this month following reports of Li's connection to Bo.
The stock dropped 10 per cent on Monday after reports linking the two surfaced and remained stable for the following two days.
The senior managers of China Everbright, a construction, water and waste investment holding company, had earlier come under fire as they said they could not confirm if Li was Bo Xiyong, even though he had served on the board since June 2003.
This raised questions about the level of the company's corporate governance.