(Yicai Global) Jan. 18 -- Chinese carmaker Sokon Industry Group, whose stock price has almost quadrupled over the past 12 months, has denied it knew about the alleged insider trading of its shares by a former chief strategy analyst of Zhongtai Securities.

Sokon, which counts telecoms giant Huawei Technologies as one of its partners, was unaware of the events that led to Chen Long's arrest and the auto manufacturer did not violate any relevant laws and regulations, the Chongqing-based company said in a statement today. The firm maintains normal cooperation with the phonemaker, it added.

Two employees of Huawei and Zhongtai Securities have been arrested after rumors recently began circulating on Weibo involving allegations of 20 people, including Chen, Huawei’s employees, and the general manager of Everbright PGIM Fund Management’s quantitative investment department, manipulating Sokon’s share price.

Chen has been detained for suspected market manipulation and insider trading, Shanghai Securities News reported today. Chen resigned from his role at Zhongtai Securities last November. The brokerage didn't know about Chen’s alleged violations, said the Jinan-based financial institution.

Since last April, Huawei and Sokon have cooperated to sell their first new energy vehicle Seres SF5 which features Huawei's software. Last month, the Shenzhen-based firm announced the launch of its second model with Sokon, Aito M5.

Sokon's stock price was surging last year amid its famed cooperation with the electronics manufacturer despite its sluggish sales. From April to November, sales of Seres SF5 totaled only 6,930 vehicles, far behind other popular models.

Sokon’s share price [SHA: 601127] was 10 percent up at CNY51.93 (USD8.20) in the afternoon.

Editor: Emmi Laine, Xiao Yi