(Yicai Global) March 17 -- Shares of three Chinese industrial firms, ABA Chemicals, Taihe Water Treatment Technologies, and Xiuqiang Glasswork, dropped to one-month lows today after they said yesterday that the country's main securities regulator is investigating them for information disclosure violations.

Agricultural and pharmaceutical chemicals firm ABA's stock price [SHE: 300261] fell 9.6 percent to CNY4.14 (US 59 cents) this morning. 

Sanitation chemicals company Taihe Water Treatment's shares [SHE:300801] lost 7.15 percent to CNY37.40 (USD5.34).

Glass processor Xiuqiang's share price [SHE:300160] declined 7.5 percent to CNY7.50.

Market insiders told China Securities Journal that it is probably the new securities law, implemented early this month, that has prompted the China Securities Regulatory Commission to exercise strict control on information disclosure.

ABA had seen its shares rally after reporting in early February that its subsidiary is the world's main key intermediate supplier toward HIV drug Darunavir that was earlier endorsed by an academician at the Chinese Academy of Engineering to be effective in suppressing Covid-19. Meanwhile, ABA's controlling shareholder ABA Entrepreneurship Investment was trying to pare its stake.

But once the Shenzhen Stock Market started asking some questions, the Shanghai-based firm changed its wording to "one of the three major suppliers." Its earnings report shows that such sales made up a fraction of its total revenue in the past few years. 

Taihe Water Treatment's stock price also surged after the Shandong province-based firm said on Feb. 3 that it intends to add peracetic acid production to its business scope. However, it has made ingredients of that disinfectant already before this, resulting in very small revenue streams for the parent. 

Xiuqiang's shares had been elevated by the Jiangsu province-headquartered company's repeated claims about it being Tesla's main glass supplier for vehicle charging piles. But the firm still lacks certification credentials from the California-based new energy vehicle maker, as well as the first order.

Editor: Emmi Laine