Chinese e-cigarette billionaire Chu Lam Yiu is under investigation by Chinese authorities, causing shares of her company, Hong Kong-listed Huabao International, to fall by over 65 per cent, reports Forbes.
Chu, who serves as chair and CEO, is currently under investigation for “suspected disciplinary violations” of an unclear nature, the fragrances and tobacco flavouring supplier announced on 24 January, the report said. “Up to the date of this announcement, the company has not been provided with any details of the nature of the suspected violations of Ms. Chu that is currently being investigated,” the company said in a filing to the Hong Kong Stock Exchange. “The business operation of the Group remains normal.” The company noted that the probe is being conducted by the government body Leiyang City Supervisory Committee.
Chu – often dubbed “China’s vaping queen” – owns approximately 70 per cent of Huabao International’s shares. In 1996, Chu founded the precursor to Huabao International at the age of 26. According to the report, the company was listed on the Hong Kong stock exchange after a backdoor takeover of a publicly traded company in 2004, and completed a reverse merger a decade after its founding in 2006.