Yang Shengjun, general manager of AVIC Capital Co. Ltd (File photo)

BEIJING, July 29 -- China's state-owned AVIC Capital Co. Ltd. announced Wednesday it has removed general manager Yang Shengjun after its subsidiary company came under investigation on suspicion of cutting stock holdings.

AVIC Capital, controlled by the state-owned Aviation Industry Corporation of China (AVIC), said in a filing that its subsidiary company, AVIC Investment Co. Ltd., had been investigated by the China Securities Regulatory Commission (CSRC) for selling shares against regulations.

To stem a massive sell-off in the stock market, which has lost one-third of its value since its June peak, the CSRC banned major shareholders, corporate executives and directors who hold more than5 percent of a company's shares from selling stakes in listed companies for six months starting on July 8.

The CSRC said the measure aims to "maintain stability of the capital market and protect the legal rights and interests of investors" and any disregard of the rule would be "treated seriously."

AVIC said it will cooperate with the investigation, adding that it will not have a major impact on business activity.

The company's board of directors has decided that company president Meng Xiangtai will concurrently serve as general manager.