Guangzhou Automobile's (HKG:2238, SHA:601238) GAC Aion electric vehicle unit said rumors about its falling valuation leading to huge losses for employee-shareholders are "unfounded and purely malicious," Yicai Global reported Wednesday.

The losses are rumored to be linked to a delay in the EV manufacturer's initial public offering, Yicai said.

GAC Aion said it is carrying out its employee equity incentive scheme in accordance with regulations, the report said.

Chinese social media rumors stated GAC Aion's valuation plunged by as much as 58% due to delays in its IPO, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)