Hopson Development Holdings shares plunged as much as 50.62 per cent yesterday after a report that its chairman, Chu Mang-yee, was implicated in the criminal investigation of Wong Kwong-yu, the former chairman of Gome Electrical Appliances Holding.
In a sign that the high-profile economic crime case against Wong may be widening, Apple Daily reported that Mr Chu was under investigation by law enforcement agencies in Dongguan as he was suspected of being involved in the Wong probe.
Both Mr Chu and Wong grew up in Guangdong province and knew each other well, the newspaper said.
Wong, who has been under investigation for financial crimes since November last year, is reportedly facing charges of manipulating the prices of shares in two companies. He resigned as chairman and director of Gome on January 19.
Hopson shares plummeted to as low as HK$2.38. They then rebounded to close with a loss of 27.39 per cent at HK$3.50 after the company issued a statement that 'the contents of the article have no basis in fact'. Hopson officials were unavailable for further comment.
Mr Chu is the latest person to be dragged into the investigation of Wong, the founder of the country's largest electrical goods retailer.