(Yicai) June 6 -- Shares of Yuyue Medical Equipment and Supply rose after the Chinese medical devices supplier dismissed a report that its actual controllers were investigated as part of a corruption case involving Yunnan Baiyao Group, a maker of traditional Chinese medicine.

Yuyue Medical [SHE: 002223] finished 1.5 percent higher at CNY40 (USD5.52) a share in Shenzhen today, after the stock climbed by as much as 4.2 percent earlier in the day. It tumbled 5.7 percent yesterday.

“This is fake news, and we have reported it to the police,” a staffer at the Danyang-based company told Yicai late yesterday.

Citing people familiar with the matter, Chinese financial news website Jiemian reported yesterday that Yuyue Medical’s actual controllers, Wu Guangming and his son Wu Qun, were investigated after being implicated in the Baiyao anti-graft case. The two are barred from leaving China even though the probe has concluded, it said.

Yuyue Technology Development, Yuyue Medical’s largest shareholder controlled by the Wu Guangming and Wu Qun, participated in the mixed-ownership reform of Baiyao in 2017, becoming its fourth-largest shareholder with a 5.6 percent stake.

Yuyue Technology began selling its shares in Baiyao in the second half of last year and slipped out of Baiyao’s top 10 shareholders’ list as of the end of the first quarter of this year.

Wu Guangming and Wu Qun own 10.3 percent and 7.7 percent, respectively, of Yuyue Medical’s shares. Wu Qun is the company’s chairman and general manager.

Wu Qun’s most recently appeared in public on May 29, when he took part in the collective performance briefing of the Shenzhen Stock Exchange in his capacity as Yuyue  Medical’s chairman.

Editors: Dou Shicong, Futura Costaglione