What’s new: Yang Zhihui, the actual controller of Shenzhen-listed diving equipment maker China Dive Co. Ltd., is under investigation on suspicion of market manipulation, the company said in a Monday filing (link in Chinese) with the Shenzhen Stock Exchange.
Yang on Monday resigned from his posts as a director of the board and general manager of China Dive, according to another filing (link in Chinese).
The stock of China Dive surged from about 50 yuan ($7.63) per share in September 2019 to more than 200 yuan in April. The unusual surge drew the attention of regulators, and the Shenzhen bourse has inquired into the running of the company multiple times.
China Dive said (link in Chinese) in an October filing that the China Securities Regulatory Commission had initiated an investigation into the company for its possible violations of information disclosure rules.
What’s the background: Yang, 49, made his fortune from property development on the Chinese mainland, and later extended his investment to Hong Kong by acquiring a controlling stake in Hong Kong-listed Landing International Development Ltd., which in 2014 acquired a casino on Jeju Island of South Korea.
In 2018, Yang was “absent” for three months to assist Chinese authorities in an investigation into disgraced financial big shot Lai Xiaomin, a former chairman of China Huarong Asset Management Co. Ltd. Caixin previously learned that Yang was detained in Cambodia in August that year and then aided the investigation over his suspicious business ties with Huarong.
Contact reporter Timmy Shen (hongmingshen@caixin.com) and editor Marcus Ryder (marcusryder@caixin.com)
