Chinese tech CEO detained by police on suspicion of bribery

Posted at 8:10 AM, Aug 01, 2019
and last updated 2019-08-01 10:10:39-04

A Chinese tech entrepreneur has been detained by police on suspicion of bribery, his company said in a statement Thursday.

Baofeng Group said in a stock exchange filing that its founder, chairman and CEO Feng Xin was suspected of bribing a “non state” actor. The company cited a detention notice issued by police.

Baofeng did not elaborate on the nature of the allegation, except to say that it is “not about corporate crime,” and that it does not know if the matter is “related to the company.”

“We have not received any notice that the company will be investigated,” Baofeng added.

CNN has been unable to contact a representative for Feng.

Baofeng’s statement was released four days after the company acknowledged that Feng had been placed under “coercive measures” by police on suspicion of committing a crime.

Baofeng Group operates Storm Codec, a popular media software in China. It also offers online entertainment services and manufactures virtual reality glasses.

Its stock has fallen more than 20% since that statement was released.

The Beijing-based company said that recent media reports on Feng have had a “relatively big negative impact” on its investors, employees and business partners.

The company said in its filing that some of the reporting about Feng contained “false or misleading information.” But it did not elaborate.

“So far, our core workforce has been stable,” the company said. But it added that it will “try to keep operation costs low, reduce various costs and expenditures” and maintain stability.

The company made headlines after its stock market debut in 2015 when the shares soared. The success of taking the company public made Feng a billionaire. But the stock has slid dramatically since then as profit has declined.

Last year, Baofeng Group suffered a loss of 1.09 billion yuan ($160 million).