Shares in Maoye International Holdings fell yesterday after trading resumed following a statement from the company denying allegations that chairman Huang Maoru was under investigation by the mainland authorities. Maoye said Huang had resumed his duties at the company.
The Shenzhen-based department store operator dived 21.3 per cent to close at HK$1.99, its lowest since October 8. At its lowest point yesterday, the stock was down 28.1 per cent at HK$1.82.
Huang made a public appearance at one of Maoye's department stores in Shenzhen on Tuesday for the launch of a new promotional campaign.
The company also released a statement yesterday announcing satisfactory sales performance this month with double-digit same-store growth.
A company spokesman said Huang was back at work as normal at Maoye's Shenzhen office.
'Even though Huang made an appearance in Shenzhen [on Tuesday], investors are no doubt going to continue to be concerned about the company,' said Bernard Chu, an analyst at Guodu Securities.
