TEXTILE manufacturer Best Wide Group, mired in controversy over the exceptional movement of its share price recently, may be investigated by the Securities and Futures Commission (SFC) for failing to report within five trading days a hefty stake cut reportedly conducted by its chairman Li Chun. On Tuesday, the company informed the stock exchange about Mr Li's disposal of an 11.64 per cent stake in the company - seven trading days after the transaction took place. The disposal coincided with a plunge in the company's share price on October 18 and 19. The stock fell 54.21 per cent over the two days. The company told the exchange on October 18 that it could not provide a reason for the exceptional price movement. The SFC is expected to check whether the company has breached a rule of disclosure by failing to inform the exchange of Mr Li's 11.64 per cent disposal within the stipulated period. The company is also expected to be questioned as to why it did not provide more information on the transaction on October 18, when it was required to do so. Mr Li is reported to have sold a total of about 24.82 million shares between October 4 and 20. On October 7, the company said Mr Li held 112 million shares, or 52.6 per cent, of its issued share capital. The 11.64 per cent sale alone reduced his holding to 40.96 per cent. The share price of Best Wide dropped to 87 cents on October 19 from $1.90 on October 6. The SFC had been monitoring the price movement during this period. Mr Li acquired Best Wide, formerly named Yukon Holdings, in January through Excellent Fortune. Since then, Best Wide has been spinning off the assets owned by Yukon, which had been suffering losses in recent years. For the year to March 31, 1994, Yukon reported losses of $14.6 million. Until recently, the sale of Yukon's assets has gone smoothly. For the financial year to March 1995, Best Wide recorded an exceptional gain of $25.8 million through the disposal of its associate companies, including loss-making Yangtzekiang-Tomen in France.