The share price of China Everbright International was the second biggest loser on the Hong Kong stock exchange yesterday, possibly reflecting jitters over a reported central government investigation into the business assets of ousted Chongqing party chief Bo Xilai and his relatives.
Bo's eldest brother, Bo Xiyong, is an executive director and vice-chairman of the environmental protection company, under the name 'Li Xueming '.
Everbright's share price fell 10 per cent to HK$3.32 yesterday, with 21 million shares changing hands. The benchmark Hang Seng Index lost 1.84 per cent, or 386.25 points, to close at 20,624.39.
The share price drop might be partly due to yesterday's South China Morning Post report that Beijing had sent a task force to probe the business assets of Bo Xilai and his family, said an analyst who declined to be named.
'I can see no other negative news about the company,' said Vivian Fu, an analyst at Guosen Securities.
However, an Everbright spokesman blamed yesterday's share price drop on a volatile stock market, saying Everbright's share price had risen 10.8 per cent to HK$3.69 last Friday, two days after the company's news briefing on its relationship with Bo Xilai and Xiyong.
On June 1, last year, Bo Xiyong sold eight million Everbright shares at HK$3.20 per share, gaining HK$25.6 million, according to the Hong Kong stock exchange website. That reduced his shareholding in Everbright to 10 million shares or a 0.27 per cent stake.
At last Wednesday's press conference, Everbright chief executive Chen Xiaoping said his company was not under investigation and Bo Xiyong was 'totally free' in Beijing.
Li Xueming (aka Bo Xiyong) is also executive director and deputy general manager of Everbright's parent, China Everbright Group, according to the listed company's 2011 report.