Chinese seafood firm Zoneco Group Ltd. is facing a probe by Dalian city investigators over an incident in 2014 that saw much of its scallop stock written off.
The board of management at Zoneco – also known by its Mandarin name Zhangzidao – published a note to investors stating that its controlling shareholder, Changhai County Zhangzidao Investment and Development Co., received a “letter of indictment” from Dalian City People’s Procuratorate Office on 19 January.
The indictment centers on the timing of the sale of more than CNY 11 million (USD 1.7 million, EUR 1.4 million) worth of company shares in the “sensitive period,” during which such sales are not allowed under China’s securities laws.
