Shares of mainland snack maker Tenwow International (1219) yesterday closed 6 percent lower after part of its assets were frozen by Shanghai authorities following the disappearance of its chairman and chief executive Lin Jianhua.
Lin has been absent from work since May 2 as he is assisting an investigation, according to a stock exchange filing. Details of the investigation were not given.
The Shanghai Municipal Public Security Bureau last month imposed temporary freezes with a duration of two to three years on the company's production facilities, offices and warehouses. Due to the frozen assets, the company failed to renew three loans, with a total amount of 46 million yuan (HK$56.2 million), which expired on June 4 and June 8, said Tenwow.
The frozen assets included several parcels of land and the equity interests of 11 subsidiaries. The company claimed it has not received a reply after submitting an inquiry to the bureau on the reasons for the asset freeze and an application for a release of the assets.
Meanwhile, Moody's downgraded juice producer China Huiyuan Juice (1886)'s rating from B1 to Caa1, over the suspension of its shares.
Trading of its shares was suspended on April 3 since the company made 4.3 billion yuan in short-term loans to Beijing Huiyuan Beverage, an associate of Huiyuan's chairman Zhu Xinli.