(Caijing.com.cn) Silver Base Group Holdings Ltd. (HK.0886), the largest distributor for Wuliangye Yibin Co. (SZ.000858), denied media reports it was linked to the investigation into the liquor-maker or that it was being probed by the Hong Kong authorities.
The company said in a Sept. 24 statement to the Hong Kong Stock Exchange that the investigation into Wuliangye by the mainland securities watchdog would not have a significantly negative impact on its business.
It also dismissed reports claiming it was involved in a fictitious export transaction and smuggling, and was likely to be investigated by the Hong Kong Securities and Futures Commission and the Independent Commission Against Corruption.
Wuliangye Yibin suspended share trading on Sept. 24 following accusations levelled by the China Securities Regulatory Commission the previous day that it failed to disclose major securities investments and the huge losses from them.
It was also accused of overstating its 2007 revenue by 1 billion yuan.
Silver Base listed in Hong Kong on April 8, 2009. Sales of Wuliangye liquor products contribute more than 80 percent of its revenue.
Silver Base closed down 12 percent at HK$2.41 on Sept. 24 in Hong Kong.
1 yuan = 14 U.S cents