SHANGHAI - APPLIANCE king Wong Kwong-yu, one of China's richest tycoons, is under police investigation for alleged share trading violations, local newspapers reported on Monday.

Wong is founder and controlling shareholder in Gome Electrical Appliances Holdings, China's biggest appliance chain.

Trading of its shares was halted on the Hong Kong Stock Exchange pending the release of what the company said was price sensitive information.

A Gome statement, released shortly after trading was halted, denied having received any legal notices from Chinese authorities.

It said that the company's operations were continuing as normal.

There are varying estimates of the fortune held by 39-year-old Wong, also known as Huang Kuangyu. But he recently topped a list of China's wealthiest individuals compiled by Shanghai-based analyst Rupert Hoogewerf, with assets said to be worth US$6.3 billion (S$9.64 billion).

Gome recently set a deal with Dell to sell Dell computers through its outlets.

The state-run newspaper China Securities Journal reported that Wong was being questioned by police for alleged share price manipulation.

The allegations are linked to Shandong Jintai Group, a medicine maker with shares traded in Shanghai that is reportedly controlled by Wong's brother, Huang Jinshi. Trading in financially troubled Shandong Jintai's shares was suspended Monday.

Gome operates more than 1,300 stores and employs about 300,000 people, the company's statement said. -- AP