Signage is displayed at the Hong Kong Independent Commission Against Corruption (ICAC) headquarters … [+]
Chu Lam Yiu, the billionaire co-chairman of fragrances and tobacco flavorings supplier Huabao International Holdings, has been released from “residential surveillance at a designated location” by police in the central Chinese city of Chongqing, the company said in a Hong Kong Stock Exchange announcement this week. However, Huabao’s deputy CFO has been arrested in Hong Kong in connection with a bribery investigation, the company said today.
Huabao said on Monday the Chongqing Yongchuan District Police Bureau had lifted the restriction on Chu, and “Ms. Chu has resumed work accordingly.” She was placed under surveillance there in January, and has faced investigation elsewhere.
Dubbed “China’s vaping queen,” Chu was placed under surveillance there in January and earlier faced restrictions elsewhere. Reportedly born in Sichuan, Chu holds Hong Kong citizenship, founded Huabao in 1996, and took it public in Hong Kong through a “backdoor listing” a decade later. The listed company was previously known as Leaptek.
A Huabao announcement today said the Independent Commission Against Corruption of Hong Kong conducted a search at its business offices in Hong Kong during which the company “provided certain files and records for the purpose of an ICAC investigation.” Huabao’s board has “been informed” that Choy Man Har, an executive director and deputy chief financial officer, was arrested for investigation on today by the ICAC in relation to offenses under the Prevention of Bribery Ordinance, Crimes Ordinance and the Organized and Serious Crimes Ordinance.
“No charge has been laid against Ms. Choy so far,” the announcement said. Huabao “will monitor this matter and take necessary legal advice as appropriate.”
“As at the date of this announcement, the Investigation has no material adverse impact to the Group and the business and operations of the Group remain normal,” it said.
Trading in Huabao’s shares was suspended today; it will resume tomorrow.
Chu is worth $2 billion on the Forbes Real-Time Billionaires List today.
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