Mobile-telephone distributor Global Tech (Holdings) was suspended from trading yesterday after its shares plunged 21.42 per cent on heavy volume.
The management of the firm was unavailable for comment and its press relations company said it was unable to locate chairman Johnny Sze Tsang-fai and his brother, vice-chairman Timothy Sy Ching-tang, yesterday.
The development followed an announcement from the company on January 15 refuting a media report that said a 16 per cent fall in its share price the previous day was related to rumours that a senior executive had been detained. The report said the executive was detained in Guangzhou over taxation issues but was released a day later.
The firm said at the time it did not know what caused the plunge in share price, adding that none of its directors was involved in the alleged investigation and it was not aware of any mainland tax investigation into the company.
Global Tech's shares were suspended at 2.30pm after falling to 38.5 HK cents from its previous close of 49 cents, pending the release of price-sensitive information. About $17.39 million worth of shares changed hands.
Global Tech, which distributes Samsung handsets in China, Hong Kong and Taiwan, was listed in April 1999. Its net profit grew from $260.81 million in the year to September 30, 1999, to $475.3 million in the past financial year.