Securities regulators in Chongqing have launched an investigation into an alleged insider trading case.
PKU Healthcare, together with its shareholder Peking University's Founder Group, is being accused of insider trading.
The shares of PKU Healthcare have since been suspended.
Analyst Zhang Gang says the suspension of company's shares could lead to further consequences.
"Negatively, there'll be a risk of delisting due to the listed company's involvement in serious illegal issue, thus, shareholders could demand a civil compensation. But if it's only a limited number of senior executives who are related to the case instead of the whole company, the company could still continue its normal operating, and the transaction will be resumed once the investigation is finished."
Founder Group has issued a statement denying the allegation.
It's being alleged the CEO of Founder Group is the main person behind the insider trading, which is said to have netted him around 400-million yuan, or 65 million U.S. dollars.
