Chu Lam Yiu, CEO of Huabao International Holdings, saw half her fortune evaporate on Monday, Jan. 24, as shares of her company nosedived 67% in Hong Kong trading.
Chu’s Hong Kong-based company specializes in flavors and tobacco-related businesses.
On Monday, the Chinese regime launched an investigation into Chu for potential disciplinary violations. No details of the probe or Chu’s suspected breach have been released yet. Leiyang City Supervisory Committee, an authority based in Hunan province, southern China, is carrying out the investigation.
According to Forbes, Chu owns about 70% of the company. The paper estimated her net worth at $5.8 billion before the probe from Chinese authorities.
Forbes estimates Chu’s net worth dropped to $2.6 billion as of Monday’s close from $5.8 billion in the most recent rankings of China’s richest, published in November 2021.
According to a biography posted on the company’s website, Chu was born in Sichuan province, China, and holds a Hong Kong passport. She was a member of the 5th Chinese People’s Political Consultative Conference Committee in Shenzhen, a regime advisory body.
Last year, Xinhua News Agency, a mouthpiece of the Chinese regime, had called for more restrictions on sales of e-cigarettes, especially to those under 18. After the report, Huabao International’s stock declined by 8% in early August.