Investing.com – The trading of H shares of Baytacare Pharmaceutical Co. Ltd (HK: 8197), China’s drug and health data seller, was suspended from trading on the Hong Kong stock exchange on Thursday morning.
A day ago, the Beijing Municipal Chaoyang District People’s Procuratorate approved the arrest of Wang Shaoyan, Baytacare’s former executive director and chairman of the board, on suspicion of misappropriating funds. Wang’s father, Wang Yan, was also included in the investigation.
The company fired Wang Shaoyan in late April as it received a letter, which alleged Wang borrowed $6.55 million in December 2016 for 15 days. Baytacare was returned only $2.84 million and Wang claimed that he used the remaining $3.71 million “for personal purpose”.
In late August, the company announced a $3.23 million procurement of smartphones from telecommunication products maker Saibo Yuhua. Baytacare Management provides the management software installed on the phones which will then be sold to information and communication technology company Xintuo Wanbang.