China International Holdings says that a bank account belonging to its subsidiary in China has been frozen by local police.
As at March 30, the subsidiary, CIHL (Tianjin) City Development, has a balance of RMB18.64 million in the account with China Bohai Bank.
The account, according to China International Holdings, was frozen by the Yiling District Public Security Bureau of Yichang City, Hubei Province.
"As the company and/or CIHL Tianjin has not received any notification from any relevant authorities to be a subject of investigation, CIHL Tianjin has commenced enquiries with the Yiling Public Security Bureau to determine the reason for their actions.
"In addition, if and when deemed appropriate, CIHL Tianjin will be appointing legal counsel, to facilitate the resolution of this matter.
"At this juncture it is premature to determine the financial impact" because of this episode, the company adds.
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CIH maintains it has sufficient funds to be able to settle any obligations or liabilities payable to its vendors and its employees in China.
The company's shares last changed hands on March 23 at 9.1 cents.
