Huang effect pulls down Maoye, Chengshang shares

SHANGHAI: Stocks linked to Maoye International Holding Ltd fell sharply in both the Shanghai and Shenzhen markets yesterday after media reports that Huang Maoru, the company's chairman is under investigation.

Chengshang Group Co stocks fell 9.47 percent to close at 21.99 yuan in Shanghai, the biggest one-day decline since November 2008. Maoye International has a 66.77 percent stake in the firm.

"Huang's rumored investigation led directly to the price decline for Maoye and Chengshang," said Li Xiangfeng, an analyst with Tebon Securities.