(Yicai Global) May 11 -- Shares in Zhangzhou Pientzehuang Pharmaceutical sank as much as 4.1 percent today after two senior executives connected to the Chinese maker of traditional Chinese medicine were reported to have been placed under investigation for suspected serious violations of the law.

Pientzehuang’s share price [SHA:600436] closed down 2.6 percent at CNY301.25 (USD43.43). Earlier in the day it sank to CNY296.50. Just two days ago the stock rose to a four-month high after the firm announced its biggest-ever price markup.

Director and Deputy General Manager Liu Congsheng is being probed, Zhangzhou, southeastern Fujian province-based Pientzehuang said today. The reasons for the probe are unclear and senior management continue to perform their duties as normal, it added.

And Pan Jie, former chairman of Pientzehuang and the current chair of Pientzehuang’s majority shareholder Zhangzhou Jiulongjiang Group, is also under investigation, the Zhangzhou Discipline Inspection Committee of the Communist Party of China said yesterday.

Pan stepped down as director and chairman of Pientzehuang, which makes a popular herbal hangover treatment, in December 2021. He only became chairman of Jiulongjiang in September last year.

Editor: Kim Taylor