(Yicai Global) April 10 -- Shares in China's Sunflower Pharmaceutical fell by the daily trading limit today after a report that ex-Chairman Guan Yanbin, the firm's controlling shareholder, was arrested on suspicion of murder earlier this year.
The Harbin-based firm's stock [SHE:002737] dived as much as 9.8 percent to CNY17.3 (USD2.58) in morning trade. It has since recovered to just under CNY18.2, down 5.27 percent.
Police in Heilongjiang province arrested Guan, 65, on Jan. 29 for intentional homicide, state-backed news site The Paper reported today, unable to furnish details about the supposed victim. The case is still on-going.
The Beijing News speculates that the victim is Guan's ex-wife Zhang Xiaolan, who is currently in a persistent vegetative state -- though it is unclear when or how this happened.
When the pair divorced, a little over a year ago, Zhang transferred her CNY63 million (USD9.4 million) holdings in the firm to Guan and left "without asking for a penny," National Business Daily reported at the time.
Sunflower, a kids' medicine maker that had an operating income of CNY4.5 billion (USD670 million) last year , announced on Jan. 1 that Guan would resign as director, chairman and general manager for age-related reasons and his two daughters Guan Yi and Guan Yuxiu would take the helm. It has never announced that police were investigating the alleged killer.
Editor: James Boynton