SHANGHAI/HONG KONG Nov 9 (Reuters) – Shares of LONGi Green Energy Technology (601012.SS) rose on Thursday after the company said an investment arm of Hillhouse had been placed under supervision for transferring shares of the company in violation of the lines.
The solar company’s shares rose nearly 5% in morning trading after HHLR Management Pte. Ltd was investigated by the China Securities Regulatory Commission (CSRC) for violating share transfer rules.
Singapore-based HHLR Management is part of Chinese investment giant Hillhouse’s public investment arm HHLR.
The CSRC recently published rules that raise the bar for large shareholders to transfer or reduce shares, as part of efforts to ease selling pressure in a shaky stock market.
HHLR management was informed by the CSRC on Wednesday of the investigation into suspected rule violations, LONGi said, without providing details.
Hillhouse, controlled by billionaire Zhang Lei, did not immediately respond to Reuters request for comment.
The CSRC has stepped up scrutiny of share reductions and in recent months has been investigating alleged rule violations by Eastern Pionner Driving School Co (603377.SS) and Nanjing OLO Home Furnishing Co (603326.SS).
HHLR Management held a 4.98% stake in LONGi at the end of September, up from 5.85% at the end of 2022, according to the documents.
In addition, the Shanghai and Shenzhen stock exchanges published detailed rules on Wednesday that would tighten controls on refinancing by listed companies, adding to a growing list of measures aimed at reviving confidence in the stock market.