(Yicai Global) Feb. 13 -- Fresh from announcing its acquisition of Wanda Group's department store chain, Chinese electronics retailer Suning faces an investigation for possibly breaching regulations by not first informing the Shenzhen bourse.
The Shenzhen Stock Exchange, where Suning is listed, will consider whether the Nanjing-based firm broke information disclosure rules, the Beijing News reported.
Suning has taken over all 37 outlets of Wanda Department Stores for an undisclosed amount, Chairman Zhang Jindong said yesterday without filing a statement with the exchange beforehand, which investors have questioned.
Whether the purchase violated rules will not be known until the transaction is completed, an informed source close to the bourse told the Beijing News, adding that the exchange will take all necessary measures if need be. Suning told the paper it will disclose the cost of the deal in its annual earnings report.
Suning said it bought the stores from developer Wanda to create an online-to-offline chain that would offer consumers a better shopping experience. Its shares [SHE:002024] jumped more than 3 percent yesterday to their highest level since last November. Today, they gained a further 1 percent to close at CNY11.45 (USD1.69).
Editor: Emmi Laine