Bull Group Photo: CFP

Chinese leading socket maker Bull Group announced on Wednesday that the local market regulator in East China's Zhejiang Province has launched an investigation into the company's alleged monopolistic practices.

Analysts said the move shows that China's antitrust efforts have expanded from internet platforms to other sectors affecting every aspect of economy. Such move aims to create a fair market environment and a long-term development for industries.

Bull Group said in a communication sent to the Shanghai Stock Exchange on Wednesday that it had received the letter from the local market regulator on Tuesday and will actively cooperate with the antitrust investigation.

"We will operate in accordance with law and continue improving management quality and sustainable return on investment," according to the announcement from Bull Group. It added that its operation remains as usual and will disclose the case's development based on the progress of the investigation.

The company's shares shed 2.77 percent on Wednesday while the flagship Shanghai Composite Index ended up 0.61 percent. 

However, unlike the antitrust probes into Alibaba and Meituan for suspected monopolistic practices, including forced exclusivity arrangements known as 'choosing one out of two,' the investigation into Bull Group is based on the grounds of alleged reaching and implementing monopolistic agreements.

A similar probe was launched against Yangtze River Pharmaceutical Group in November 2019. In April, China's market regulator slammed the company with a fine of 764 million yuan ($118.72 million) for its violation of the country's anti-monopoly law, accounting for 3 percent of its annual revenue in 2018.

Alibaba was pounded with a record $2.8 billion antirust fine in April after an investigation beginning December determined that the e-commerce giant had abused its market position for years. 

Bull Group debuted on the Shanghai stock market in February 2020 and its shares have soared 242. 23 percent since its IPO. 

The company, based in Cixi, East China's Zhejiang Province and known for its electrical and electronic products, posted 2.31 billion yuan in net profit last year, an increase of 0.42 percent, despite the fallout of the COVID-19 pandemic and big swings in raw material prices. 

Bull Group saw its net profit soar 256.17 percent year-on-year to 607 million yuan during the first quarter of this year.