Sinovel Wind Group Co. Ltd., one of China's largest wind turbine manufacturers, said on Monday that it is under investigation by securities regulators.
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The Beijing-based company is being investigated by China Securities Regulatory Commission (CSRC) for suspected violations of securities laws and regulations, it said in a statement to the Shanghai Stock Exchange.
It gave no further details of the investigation or the allegations it faces. “The company will actively cooperate with the CSRC's investigation,” Sinovel said in the statement.
During the investigation, sales of the company's lock-up shares will be suspended, according to the statement. The company was scheduled to float 1.84 billion shares on Monday, worth about 7.24 billion yuan (1.19 billion U.S. dollars), as their lock-up period expired.
The share price of the company plummeted by the daily limit of 10 percent to 3.54 yuan after the announcement.