Huabao International Holdings Ltd. shares sank the most in almost a year after one of the company’s financial officials was arrested, and its offices searched, as part of a Hong Kong corruption investigation.
Shares tumbled as much as 15% in Hong Kong trading, the biggest intraday loss since July 2022, after the company said deputy Chief Financial Officer Choy Man Har was arrested by the Independent Commission Against Corruption of Hong Kong on Wednesday. Choy hasn’t been charged.
The company’s offices in the city were also searched and the firm handed over certain files and records for ICAC’s investigation, it said in a statement.
Huabao said the investigation has no material adverse impact on the group and its business and operations remain normal. The Hong Kong-based firm produces and sells flavors and fragrances, tobacco raw materials and condiments.
The stock has been hit by a bout of intense volatility this week, climbing as much as 31% on Tuesday after Chief Executive Officer Chu Lam Yiu’s residential surveillance was lifted by the Chongqing Yongchuan district police bureau.
Shares traded 14% lower at HK$3.10 (40 cents) by 10:06 a.m. local time on Thursday.
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