Guangdong officials have launched an investigation into the sale of an e-mail company after it was alleged the deal might have involved assets belonging to the state.
A director of the Guangdong Telecommunication Administration Bureau told the Yangcheng Evening News it was surprised to learn from the press that Guangzhou Feihua - a company under the bureau - had sold e-mail service provider 163.net for 50 million yuan (HK$46.9 million) to Xinfeiwang, an Internet company registered in Shenzhen.
The director said an investigation was under way, and promised to press charges if it could be proved the sale violated state assets.
The investigation was expected to focus on finding out if Guangzhou Feihua should be considered a state-owned company, and the valuation of the e-mail service.
According to reports, the controversy arose because it was the first sale of an e-mail service provider on the mainland and the bureau had been kept in the dark about the transaction.
One newspaper questioned whether 163.net had been sold cheaply, pointing out that the company which bought it had hired a former manager of Guangzhou Feihua.
Some critics questioned how the Shenzhen company could finance the deal since it was reported to have been set up by three young graduates.
