Maotai requests SSE to suspend trading of its shares

Share trading of Maotai, a popular brand of a Chinese spirit known as "baijiu", was suspended on the Shanghai Stock Exchange (SSE) on Thursday, according to a report run by the Beijing Times.

News of the unexpected suspension of share trading was later picked up by online news services, claiming that it may be connected with reports that Maotai's General Manager, Qiao Hong, has been placed under investigation.

Qiao was reportedly summoned by the Communist Party's Guizhou Provincial Commission for Discipline Inspection (PCDI) on April 30. Four members of Qiao's family, including his wife, are also reported to be under PCDI investigation.

It is still unknown what Qiao is under investigation for and the Guizhou PCDI have refused to comment.

A SSE spokesperson stated that, "The suspension of trading of Maotai shares is a Maotai internal affair... it is not a result of any malpractice in trading."

Neither the Maotai press-officer nor Qiao Hong himself could be reached for comment.

Qiao, 54, who used to serve as deputy director of the Guizhou Provincial Bureau of Light Industry, was appointed general manager of Maotai in August 2000.

Maotai was listed on the Shanghai stock exchange in 2001. Last year, the company announced record profits of 400 million yuan (50 million U.S. dollars).

Maotai shares fell by 4.7 percent on Wednesday.

Source: Xinhua