(Yicai) Aug. 25 -- Shares of Star CM Holdings, the producer of hit singing contest Sing! China, sank after broadcaster Zhejiang Satellite Television said it will suspend the show one week after a recording in which the late pop diva Coco Lee says she was unfairly treated by the show went viral on Chinese social media.

Star CM [HKG: 6698] was trading down 14.5 percent at HKD56.85 (USD7.25) as of 1.55 p.m. today. The stock has plunged over 54 percent since the scandal broke out on Aug. 18.

Zhejiang TV will suspend Sing! China to investigate the Coco Lee case as requested by viewers and netizens, the TV channel announced on its official WeChat account yesterday.

During her time as a mentor on the show last year, Coco Lee complained that the competition was unfair, after which the show's team allegedly forced her to leave the stage and the producer disrupted proceedings, causing her to fall on stage due to a pre-existing leg condition, according to the speaker in the recording, who is thought to be Lee.

The show's team said on Weibo that the recording had been edited and the misunderstanding with Hong Kong-born Lee, who died aged 48 on July 5, was cleared up at that time.

Sing! China first aired in July 2012, with some 23 mentors, including Lee, and nearly 1,000 trainee singers. It is Shanghai-based Star CM's biggest variety show.

Star CM's revenue fell 23 percent to CNY873 million (USD119 million) last year, down for the fourth straight year. Income was likely between CNY142 million and CNY152 million in the six months ended June 30, with an adjusted net loss of about CNY14.6 million to CNY18.3 million (USD2 million to USD2.5 million), compared to a net loss of CNY6.3 million (USD862,000) a year ago.

Editor: Futura Costaglione