Shanghai Xizhi Technology (HKG:1879) denied market rumors "containing groundless allegations" against its director's conduct and operational information, according to a Friday filing with the Hong Kong bourse.

The optoelectronic computing company said it reported the incident to local law agencies and reserves the right to initiate legal proceedings.

The clarification follows an earlier announcement in which the firm noted "unusual movements" in the trading price of its H shares and said there was no undisclosed information that would explain those movements.