Feng Xin, chief executive officer of the Beijing-based internet entertainment and technology company Baofeng Group, has been placed under compulsory measures by police over suspected crimes, according to the company's announcement Sunday sent to the Shenzhen Stock Exchange.
The investigation is related to Feng's suspected bribery in a 2016 financing project for a Everbright Capital and Baofeng to jointly purchase the British sports copyright company MP & Silva Holding SA, according to Chinese financial news outlet Yicai.
Baofeng said on the announcement that it will strengthen its management to ensure the stability of the company and the normal operation of its business. It will draw up corresponding management methods and emergency plans to ensure the smooth running of the company's activities.
The company also said it will continue to pay attention to the progress of compulsory measures and fulfill its information disclosure obligations in a timely manner. Further disclosed information will be available at cninfo.com and China Securities Journal.
Baofeng reached the decline limit Monday shortly after opening at 5.67 yuan ($0.82) per share, dragging the total market value to 1.87 billion yuan.