(Yicai Global) July 21 – Chinese ride-hailing service provider Ucar Group, which is listed on the National Equities Exchange and Quotations, received a notice from the China Securities Regulatory Commission on July 16 that it has opened an investigation against it based on suspected information disclosure infractions, the company said in a statement yesterday.

The inquiry will not restrict the Beijing-based firm's production and operations, does not involve its finances, and will not materially adversely impact its normal operations, per the statement.

Ucar informed the board of directors of Beijing-headquartered China Auto Rental, which is Chinese biggest car rental company, and in which Ucar holds a major stake, that it had inked a non-legally binding agreement with auto maker holding company BAIC Group on May 31 this year for BAIC to buy up to 450 million CAR shares from Ucar, equal to about 21.26 percent of CAR’s total issued share capital, CAR, announced on June 1.

Beijing-based NEEQ has halted trading of Ucar’s shares since June 1, also for alleged dereliction of information disclosure obligations.

Ucar signed a contract to transfer the CAR shares at HKD3.10 (USD0.4) per share to BAIC, it said in a statement yesterday. This share sale still has to jump through various hoops to go through, however, including regulators’ approval.

Editor: Ben Armour