Poly Real Estate Group fell in Shanghai trading yesterday despite denying mainland reports that the company was linked to an investigation of a former head of Guangdong's police and judiciary.
The Guangzhou-based developer fell 5.55 per cent to an intraday low of 22.96 yuan (HK$26.03) before closing at 23.41 yuan, down 3.7 per cent, more than the Shanghai Composite Index, which slipped 0.67 per cent.
The company issued an announcement on Wednesday denying reports circulating on the internet that its management was linked to the investigation of Chan Shaoji.
Chan, a former chairman of the Guangdong committee of the Chinese People's Political Consultative Conference, was detained as part of the corruption probe into the activities of Wong Kwong-yu, the entrepreneur behind the Gome Electrical Appliances Holding chain who is under arrest for share price manipulation.
'The management of the company is not connected to Chan Shaoji,' said the announcement, adding that none of the management knew Chan personally.
The company described the online rumour as scandal-mongering and said it had reported the matter to the police.