(Yicai Global) May 27 -- Shares at Capstone Industrial have sunk by the maximum 10 percent daily limit today following company chairman Yuan Na's decision to step down from the board of directors due to employees at the Chinese advertising firm acting violently against law enforcement last week.

The Shenzhen-based firm's stock price [SHE:000038] fell 9.96 to CNY9.94 (USD1.44) today, marking the second consecutive trading day that the shares have hit the limit down.

Yuan will still serve as a director of the company and a member of the nomination committee of the board of directors after the resignation, Shenzhen-based Capstone said in the statement, adding that he will actively cooperate with the regulators' investigation.

Four investigators from the China Securities Regulatory Commission went to Capstone to deliver a notice of investigation to the company and actual controller Jiang Jian on May 22. The company's staff did not cooperate, however, and verbally abused and pushed the officers, breaking their recorders. The officials had to call the police to secure their safety.

Capstone drew attention from the Shenzhen Stock Exchange with repeated announcements about its entry into the industrial hemp sector. The bourse sent a letter asking the company to clarify whether it has the technical means for the move or whether those announcements were purely for publicity.

The firm posted a net loss of CNY2.4 billion (USD340.9 million) for last year as it prepared for large-scale goodwill impairments on its subsidiaries. Its annual report also raised concerns from the Shenzhen bourse.

Editor: William Clegg