By Bingyan Wang
Huabao International Holdings shares tumbled after an executive director was arrested and the company’s offices were searched as part of a Hong Kong corruption investigation.
The stock fell as much as 15% in Hong Kong and was recently 12% lower at 3.18 Hong Kong dollars (US$0.41). The Hang Seng Index dropped 3.1%.
The company, which makes flavors and fragrances, tobacco raw materials and and condiments, said Deputy Chief Financial Officer Choy Man Har was arrested Wednesday by the city’s Independent Commission Against Corruption. Choy hasn’t been charged and Huabao’s operations remain normal, the company said in a statement late Wednesday.
Huabao’s offices in the city were also searched and the company handed over some files and records for the ICAC investigation, it said.
Shares of Huabao resumed trading Thursday after a brief trading halt Wednesday afternoon.
Write to Bingyan Wang at [email protected]
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